scholarly journals Pass‐Through and Consumer Search: An Empirical Analysis

2014 ◽  
Vol 96 (4) ◽  
pp. 1049-1069 ◽  
Author(s):  
Timothy J. Richards ◽  
Miguel I. Gómez ◽  
Jun Lee
Keyword(s):  
Empirical Analysis ◽  
Consumer Search ◽  
Pass Through

scholarly journals Beliefs and Consumer Search in a Vertical Industry

2019 ◽  
Vol 18 (5) ◽  
pp. 2359-2393 ◽  
Author(s):  
Maarten Janssen ◽  
Sandro Shelegia
Keyword(s):  
Low Cost ◽  
Search Costs ◽  
Retail Price ◽  
Consumer Search ◽  
Common Assumption ◽  
Vertical Relations ◽  
Retail Prices ◽  
The Common ◽  
Search Market ◽  
Pass Through

Abstract This paper studies vertical relations in a search market. As the wholesale arrangement between a manufacturer and its retailers is typically unobserved by consumers, their beliefs about who is to be blamed for a price deviation play a crucial role in determining wholesale and retail prices. The common assumption in the consumer search literature is that consumers exclusively blame an individual retailer for a price deviation. We show that in the vertical relations context, predictions based on this assumption are not robust in the sense that if consumers hold the upstream manufacturer at least partially responsible for the deviation, equilibrium predictions are qualitatively different. For robust beliefs, the vertical model can explain a variety of observations, such as retail price rigidity (or, alternatively, low cost pass-through), nonmonotonicity of retail prices in search costs, and (seemingly) collusive retail behavior. The model can be used to study a monopoly online platform that sells access to final consumers.

scholarly journals Consumer Search Behavior on the Mobile Internet: An Empirical Analysis

2015 ◽  
Author(s):  
Stephan Daurer ◽  
Dominik Molitor ◽  
Martin Spann ◽  
Puneet Manchanda
Keyword(s):  
Empirical Analysis ◽  
Search Behavior ◽  
Mobile Internet ◽  
Consumer Search

REVISITING THE S-CORPORATION PREMIUM: FURTHER EVIDENCE

2020 ◽  
Author(s):  
Luigi Donorio Demeo ◽  
Christopher Young
Keyword(s):  
Empirical Analysis ◽  
Limited Liability ◽  
Transaction Data ◽  
Legal Structure ◽  
Accounting Professionals ◽  
Pass Through

Financial and accounting professionals, the IRS and the legal community, continually deliberate the value of a business based on its legal structure – most often comparing the value of a C-Corporation to Pass-Through Entities, such as S-Corporations, and Limited Liability Companies. Despite the continued deliberations and various court rulings, the cleavages of thought have not converged on a single hypothesis of value. We provide an empirical analysis on M&A transaction data that spans nearly two-decades. The results validate the premise that there exists no Pass-Through Entity valuation premium.

The Double Diamond Paradox

2017 ◽  
Vol 9 (3) ◽  
pp. 63-99 ◽  
Author(s):  
Daniel Garcia ◽  
Jun Honda ◽  
Maarten Janssen
Keyword(s):  
Social Welfare ◽  
Alternative Explanation ◽  
Price Dispersion ◽  
Bimodal Distribution ◽  
Consumer Search ◽  
Search Cost ◽  
Monopoly Price ◽  
Pass Through ◽  
Double Diamond ◽  
Regular Price

We study vertical relations in markets with consumer and retailer search. We obtain three important new results. First, we provide a novel explanation for price dispersion that does not depend on some form of heterogeneity among consumers. Price dispersion takes on the form of a bimodal distribution. Second, under competitive conditions (many retailers or small consumer search cost), social welfare is significantly smaller than in the double marginalization outcome. Manufacturers' regular price is significantly above the monopoly price, squeezing retailers' markups and providing an alternative explanation for incomplete cost pass-through. Third, firms' prices are decreasing in consumer search cost. (JEL D11, D21, D43, D83, L13, L60, L81)

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