Price Transmission in Vertical Markets: A Comment and an Extension

14 Pages Posted: 23 Jan 2013

See all articles by Hari K. Nagarajan

Hari K. Nagarajan

Indian Institute of Management Bangalore

Raghbendra Jha

Indira Gandhi Institute of Development Research (IGIDR)

Date Written: November 30, 1998

Abstract

This paper examines the impact of dynamic information acquisition by retailers, on the degree of asymmetric price transmission in vertical markets. We propose a generalization of the extant models of asymmetric price transmission, by endogenising the process of dynamic information acquisition. It is found that, this has a significant impact on the degree of asymmetry in the process of price transmission. A test of the functional form by using the restricted version of the model rejects the restricted model.

Keywords: Asymmetric price adjustments, Vertical markets, Non-linear system of equations

JEL Classification: C32, D43, Q13, Q18

Suggested Citation

Nagarajan, Hari K. and Jha, Raghbendra, Price Transmission in Vertical Markets: A Comment and an Extension (November 30, 1998). IIM Bangalore Research Paper No. 119, Available at SSRN: https://ssrn.com/abstract=2167214 or http://dx.doi.org/10.2139/ssrn.2167214

Hari K. Nagarajan (Contact Author)

Indian Institute of Management Bangalore ( email )

Bannerghatta Road
Bangalore 560 076, Karnataka
+91-80-6582450 (Phone)

Raghbendra Jha

Indira Gandhi Institute of Development Research (IGIDR) ( email )

Gen A.K. Vaidya Marg Santoshnagar
Goregaon (East)
Mumbai, Maharashtra 400065
India

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
68
Abstract Views
549
Rank
603,475
PlumX Metrics