We analyze the rate at which cost shocks are passed through to prices when the market exhibits network externalities. We find that the pass-through rate is smaller in the presence of network externalities. Also, the deadweight loss created by a cost shock is smaller in a network market.

Pass-through with Network Expernalities

BARALDI, Anna Laura;
2011

Abstract

We analyze the rate at which cost shocks are passed through to prices when the market exhibits network externalities. We find that the pass-through rate is smaller in the presence of network externalities. Also, the deadweight loss created by a cost shock is smaller in a network market.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11591/198787
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