Economic analysis in indirect purchaser class actions

Textbook economic theories of pricing are of little help in evaluating pass-through because (1) pass-through can take on a wide range of values, even within a single proposed indirect purchaser class, under different textbook economic theories of pricing and (2) the textbook theories do not take into account certain real-world complexities of markets and supply chains, which we term "frictions," that can have a substantial impact on pass-through. [...] pass-through is an empirical question that must be answered for a given case using an empirical analysis. [...] the set of indirect purchasers can encompass individuals who bought the price-fixed product at any level of the supply chain downstream from the direct purchasers.