A Primer on Pass-on
22 Pages Posted: 20 May 2020
Date Written: January 1, 2020
The quantification of damage due to price overcharges necessarily involves the estimation of pass-on. This paper clarifies that pass-on is simply another way of describing the optimal reaction of firms to changes in their environment. It also addresses common misconceptions about a firms’ ability to pass-on changes in cost and the magnitude at which price adjustments take place both in an unregulated and in a regulated context.
Keywords: pass-on, damage quantification, private enforcement
JEL Classification: K21, K40, L40, L11, L41, L51
Suggested Citation: Suggested Citation
Maier-Rigaud, Frank P. and Maier-Rigaud, Frank P. and Heller, C.-Philipp and Sudaric, Slobodan, A Primer on Pass-on (January 1, 2020). Available at SSRN: https://ssrn.com/abstract=3557361 or http://dx.doi.org/10.2139/ssrn.3557361
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