I study the passthrough of regulated ad valorem pharmacy markups and reduced Value Added Tax (VAT) rates to pharmaceutical retail prices in Finland. My reduced form evidence shows that pharmaceutical manufacturers respond to a decrease in regulated pharmacy markups by increasing their wholesale...

We test the predictions of the sticky information model using a survey dataset by comparing shoppers' accuracy in recalling the prices of regulated and comparable unregulated products. Because regulated product prices are capped, they are sold more than comparable unregulated products, while...

Hidden “junk” fees have the potential to distort competition, creating high costs to consumers. However, regulating them can lead to adverse effects, especially in complex markets with intermediaries where they are most prevalent. To explore the equilibrium adjustments of regulating hidden...