Departmental Bulletin Paper Price Elasticity and Pass-Through in the Nash Bargaining Solution in a Distribution Channel

Adachi, Takanori

(E17-7) 2017-09 , 名古屋大学大学院経済学研究科附属国際経済政策研究センター
This paper analyzes the role of the industry's price elasticity and the determinants of pass-through in the Nash bargaining solution in a distribution channel. It is shown that the division of the upstream and downstream profits is characterized by the price elasticity and the distribution of bargaining powers. I also show that the demand curvature plays an important role in the determination of pass-through rates.

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