heterogeneous pass-through of firms. …

There is limited theoretical understanding of cost pass-through within markets where prices are dispersed. Under a … are captive to particular sellers while others are not (Varian, 1980). To study pass-through in this mixed …-strategy context, we employ a novel approach that links well to the pass-through literature in pure-strategy settings. Following an …

was passed on to consumers via a price reduction. We find a statistically significant contemporaneous pass-through to … reform. However, the pass-through effect is the outcome of a discretionary approach as discounts were negligible for rooms …