Document Type

Working Paper

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. JEL Classification: C32, D43, Q13, Q18

Publication Date

1-4-1998

Publisher

Indian Institute of Management Bangalore

Relation

IIMB Working Paper-119

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