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.

Documents

Cost pass-through report

This file may not be suitable for users of assistive technology. Request an accessible format.

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email webteam@cma.gsi.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

CMA pass-through seminar slides

This file may not be suitable for users of assistive technology. Request an accessible format.

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email webteam@cma.gsi.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

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