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 …

-run marginal cost in industries where production costs decline over time. In the context of the solar photovoltaic module industry … production costs. While we find a significant effect attributable to excess capacity for some quarters in our sample period, the …

-in-place are reduced. We find that changes in SG&A costs separate between the two cost drivers, and that the explanatory power of … of the single-driver cost behavior model. Similar insights are obtained when we replace SG&A costs with employee … headcount or employee costs as the cost measure of interest. In all cases, we find that the cost inertia term is significantly …