Analysis Group Vice President Dov Rothman and Managers David Toniatti and Philipp Tillmann have published an article in the Journal of Competition Law & Economics examining the implications of production constraints for the pass-through of cost changes.
In “The Economics of Pass-Through With Production Constraints,” the authors consider production technology that can only be adjusted in discrete intervals and/or is costly to adjust.
They demonstrate that, because of such production constraints, a firm may not pass on small changes in costs to its customers.
The authors suggest that this result has important implications for antitrust litigation – for example, the extent to which overcharges resulting from anticompetitive conduct upstream in the supply chain are passed through to purchasers downstream.
Associated People
Philipp Tillmann
Dr. Tillmann is an economist who specializes in the application of microeconomics, econometrics, and statistical methods to litigation matters, investigations, and strategy assignments. He has served as an expert witness and has supported expert witnesses, managed case teams, and conducted analyses in merger, cartel, abuse of dominance, and other matters across a broad range of industries and jurisdictions, including in the EU, the US, Canada, the UK, and Australia.
He regularly assists clients across all phases of merger cases, from pre-announcement through investigation, litigation, and compliance monitoring. His clients include merging parties, the US Department of Justice (DOJ), the Federal Trade Commission (FTC), and state attorneys general.
Dr. Tillmann holds a Ph.D. in economics from the University of Chicago, and his research has appeared in outlets such as the Journal of Competition Law & Economics and the American Journal of Political Science. He has taught economics to undergraduate and graduate students at The University of Chicago, the University of Rochester, and the University of Cologne.