Search costs and cost pass-through: Evidence for the Iranian poultry market

Omid Zamani, Thomas Bittmann and Jens-Peter Loy

Economics Letters, 2018, vol. 171, issue C, 119-122

Abstract: This study employs the per capita number of mobile internet users as a proxy for search costs to examine the potential impact of new information technologies on cost pass-through on the Iranian poultry market. We find that the per capita number of mobile internet users in space and time leads to lower prices and a higher cost pass-through. Deviations from the price-cost equilibrium reduce more quickly when access to the mobile internet becomes more widespread. All results support the hypothesis that new information technologies have positive effects on market competition.

Keywords: Information technology; Cost pass-through; Search cost; Poultry market; Iran (search for similar items in EconPapers)
JEL-codes: C33 D82 L11 L81 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:171:y:2018:i:c:p:119-122

DOI: 10.1016/j.econlet.2018.07.022

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