Quotation Loy, Jens-Peter, Weiss, Christoph. 2019. Product Differentiation and Cost Pass-Through. Journal of Agricultural Economics. 70 (3), 840-858.




The present paper extends the existing literature on vertical price transmission and cost pass‐through by investigating the impact of product differentiation. We apply distance‐measures of product differentiation to a specific product market (yoghurt) within one country (Germany). Results from a panel‐error‐correction model for 30 products sold in 432 stores over a period of 312 weeks suggest that product differentiation explains a significant share of differences in cost pass‐through rates: more differentiated products command higher prices and are characterised by lower equilibrium cost pass‐through rates as well as more sluggish price adjustment.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Journal of Agricultural Economics
Citation Index SSCI
WU-Journal-Rating new VW-C, WH-B
Language English
Title Product Differentiation and Cost Pass-Through
Volume 70
Number 3
Year 2019
Page from 840
Page to 858
Reviewed? Y
URL https://onlinelibrary.wiley.com/toc/14779552/2019/70/3
DOI http://dx.doi.org/10.1111/1477-9552.12320
Open Access N
JEL D4, L1


Loy, Jens-Peter (Former researcher)
Weiss, Christoph (Details)
Department of Economics (Weiss) (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
5302 Agricultural economics (Details)
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