Price-Cost Margins in Producer Goods Industries and "The Importance of Being Unimportant"

摘要: N this paper I investigate the proposition that price-cost margin of a producer goods industry will vary systematically with what call industry's "cost-importance," importance its output in costs industrial customers. The empirical results indicate margins are indeed negatively associated cost-importance, particularly highly concentrated industries. In these industries at least, evidence seems to confirm "the being unimportant." section I, present relationship between derived demand elasticity for an and cost-importance output, also analyze ways which pricing coordination transaction changing input suppliers interact influence margins. sections II III describe process sample selection method calculating measure IV estimating relation broad industries, V summarize my findings suggest some promising avenues future research.