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We demonstrate that cost pass-through can be used to inform demand calibration, potentially eliminating the need for … data on margins, diversion, or both. We derive the relationship between cost pass-through and consumer demand using a … general oligopoly model of Nash-Bertrand competition and develop specific results for four demand systems: linear demand …
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In empirical demand, industrial organization, and labor economics, prices are often unobserved or unobservable since …-consistent demand analysis remains feasible in the presence of partially observed prices, and hence partially observed implied budget …
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