Asymmetric Price Transmission

Asymmetric price transmission (sometimes abbreviated as APT and informally called "rockets and feathers" ) refers to pricing phenomenon occurring when downstream prices react in a different manner to upstream price changes, depending on the characteristics of upstream prices or changes in those prices.

The simplest example is when prices of ready products increase promptly whenever prices of inputs increase, but take time to decrease after input price decreases.

Read more about Asymmetric Price Transmission:  Example of Price Transmission, Consequences

Other articles related to "asymmetric price transmission":

Asymmetric Price Transmission - Consequences
... The issue of Asymmetric Price Transmission received a considerable attention in economic literature because of two reasons ... Secondly, because of the size of the some markets on which Asymmetric Price Transmission takes place (such as petroleum markets), global dependence on some products (again oil) and the share of ...

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