Firms facing international competition cannot always pass input price increases onto consumers.

the verdict

SUPPORTED

the evidence backs this

Recorded sources

2 sources for · 0 against

Counts group repeated records of the same source within each side. They do not measure evidence strength or source independence.

Is it true that firms facing international competition cannot always pass input price increases onto consumers?

Yes. Economic literature on price adjustment and tax or cost pass-through confirms that firms facing competitive pressures do not always fully pass input price increases onto consumers.

Verdict: SUPPORTED · 2 sources for, 0 against · Last checked 4 Aug 2026

The analysis

The claim addresses the economic phenomenon of cost pass-through under international or market competition. Retrieved papers [2] and [11] empirically and theoretically support the premise that price adjustments are often incomplete (partial pass-through) due to market segmentation, sticky prices, or competitive constraints.

Evidence for · 2

Price Adjustment and Exchange Rate Pass-Through

2005

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Devereux, M. B. & Yetman, J. (2005). Price Adjustment and Exchange Rate Pass-Through. doi.org. https://doi.org/10.2139/ssrn.779846

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More for · 1

Pricing strategies of the tobacco companies in response to cigarette excise tax increases in Montenegro.

2026

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M, Č., A, M., M, V., & V, V. (2026). Pricing strategies of the tobacco companies in response to cigarette excise tax increases in Montenegro.. doi.org. https://doi.org/10.1371/journal.pone.0335670

Related receipts

Is it true that firms pass higher labor costs to consumers through price increases? PARTIAL LEAN related question, same topic
Is it true that competition always leads to lower prices for consumers? CONTESTED PARTIAL related question, same topic

Receipt History

first checked04 Aug 2026

judged → SUPPORTED · 7904 Aug 2026

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