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

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  • Zamani, Omid
  • Bittmann, Thomas
  • Loy, Jens-Peter

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.

Suggested Citation

  • Zamani, Omid & Bittmann, Thomas & Loy, Jens-Peter, 2018. "Search costs and cost pass-through: Evidence for the Iranian poultry market," Economics Letters, Elsevier, vol. 171(C), pages 119-122.
    • Handle: RePEc:eee:ecolet:v:171:y:2018:i:c:p:119-122
    DOI: 10.1016/j.econlet.2018.07.022
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    References listed on IDEAS

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    Cited by:

    1. Moghaddasi Kelishomi, Ali & Nisticò, Roberto, 2022. "Employment effects of economic sanctions in Iran," World Development, Elsevier, vol. 151(C).

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    More about this item

    Keywords

    Information technology; Cost pass-through; Search cost; Poultry market; Iran;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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