Research and analysis

Cost pass-through: theory, measurement and policy implications

A literature review on cost pass-through by RBB Economics commissioned by the Office of Fair Trading.

• From: Competition and Markets Authority
• Published: 17 June 2014

Documents

Cost pass-through report

PDF, 2.73 MB, 210 pages

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CMA pass-through seminar slides

PDF, 243 KB, 27 pages

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Details

Cost pass-through describes what happens when a business changes the prices of the products or services it supplies following a change in the costs it incurs in producing them.

RBB Economics’ report highlights that the extent of cost pass-through is likely to differ according to a number of different factors (such as the responsiveness of demand and supply conditions a business faces). It also contains guidance for practitioners dealing with pass-through related issues in competition matters.

The slides were used at a seminar held at the Competition and Markets Authority on 14 May 2014.

Published 17 June 2014