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We propose an estimation strategy for two-sided matching models with non-transferable utility based on the characterization using pre-matching that exploits a fixed-point characterization of the set of stable matchings.
Persistent link: https://www.econbiz.de/10010594155
This paper provides two characterizations of the retailer’s markup relative to the manufacturer’s markup in vertical relationships with homogeneous manufacturers and homogeneous retailers. We first show that retailer’s relative markup is equal to the ratio of the retail pass-through to the...
Persistent link: https://www.econbiz.de/10010930731
Consider the classical double marginalization problem of single-product successive monopolies. We show that the ratio of the cost pass-through at the final sale relative to that at the wholesale level is characterized by the curvature of inverse demand in the final market. We also apply...
Persistent link: https://www.econbiz.de/10010743705