The article offers measures of own and cross cost pass-through in a structural framework. Unlike the traditional reduced-form analysis used in the previous literature, our approach is applicable in situations where firm marginal cost data are unobserved. The empirical value of the model is...

The endogeneity of retail market power arises in the retail pricing equation due to the correlation between margins and unobserved cost components. Nevertheless, it has long been ignored in the equilibrium analysis of retail behavior. We address the issue via a control function approach in a new...

The U.S. frozen concentrated orange juice (FCOJ) market is dominated by a small number of processors in Florida and São Paulo (Brazil), while the European FCOJ market is dominated by São Paulo FCOJ processors. Both the U.S. and European governments impose a tariff on FCOJ imports. We develop a...

We investigate oligopolistic competition between U.S. and Chinese apple exporters in the ASEAN market using strategic trade theory and the NEIO literature. We also analyze competition in the U.S. and Chinese domestic markets. U.S. supplies higher quality apples to ASEAN than China, resulting in...

This study provides a dynamic mathematical treatment of price determination under bilateral monopoly. The results are: a) a quantitiative solution for the equilibrium price; b) equality of profits of the buyer and seller; c) dynamically stable equilibrium price; and d) the bargaining process...