Using the Economics of the Pass Through in Proving Antitrust Injury in Robinson-Patman Cases

27 Pages Posted: 28 Jan 2015 Last revised: 24 Sep 2015

Alexei Alexandrov

Independent

Sergei Koulayev

Consumer Financial Protection Bureau

Date Written: January 26, 2015

Abstract

We analyze and summarize the microeconomic theory of pass-through rates. We start by analyzing a monopolist firm in a standard Micro 101 frictionless market, then add more nuances to the model, including, but not limited to oligopolistic competition, menu costs, price points, endogenous quality and package size choices, and consumer search costs, and show how each of these factors affects pass-through rates.

Keywords: pass-through rate, antitrust, Robinson-Patman act

JEL Classification: L41, L12, L13

Suggested Citation

Alexandrov, Alexei and Koulayev, Sergei, Using the Economics of the Pass Through in Proving Antitrust Injury in Robinson-Patman Cases (January 26, 2015). Available at SSRN: https://ssrn.com/abstract=2555952 or http://dx.doi.org/10.2139/ssrn.2555952

Alexei Alexandrov (Contact Author)

Independent

No Address Available

Sergei Koulayev

Consumer Financial Protection Bureau ( email )

United States

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