TY  - JOUR
TI  - Product Differentiation and Cost Pass-Through
AB  - The present paper extends the existing literature on vertical price transmission and cost pass‐through by investigating the impact of product differentiation. We apply distance‐measures of product differentiation to a specific product market (yoghurt) within one country (Germany). Results from a panel‐error‐correction model for 30 products sold in 432 stores over a period of 312 weeks suggest that product differentiation explains a significant share of differences in cost pass‐through rates: more differentiated products command higher prices and are characterised by lower equilibrium cost pass‐through rates as well as more sluggish price adjustment.
DO  - http://dx.doi.org/10.1111/1477-9552.12320
SP  - 840
EP  - 858
UR  - https://onlinelibrary.wiley.com/toc/14779552/2019/70/3
PY  - 2019-01-01
JO  - Journal of Agricultural Economics
AU  - Loy, Jens-Peter 
AU  - Weiss, Christoph 
ER -