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About: Asymmetric price transmission     Goto   Sponge   NotDistinct   Permalink

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Asymmetric price transmission (sometimes abbreviated as APT and informally called "rockets and feathers" [1][2][3]) refers to pricing phenomenon occurring when 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.