Pricethough

Pricethough is a neologism used in economics and business discussions to describe a pricing mechanism or policy aimed at ensuring that changes in upstream costs or conditions are transmitted through to final prices in a system. The term blends “price” and “through,” signaling a focus on price movements that propagate across markets, products, or stages of a value chain rather than being absorbed by margins or buffered by intermediaries.

Origin and usage

Pricethough is not an officially defined concept in major economics texts. It has appeared in online commentary and practitioner discussions to characterize pricing practices that seek complete or rapid pass-through of cost changes. Because the term is informal, its precise interpretation varies by context.

Concept and mechanisms

In macroeconomics, pricethough refers to the extent to which changes in input costs—such as taxes, commodity prices, or exchange rates—are reflected in consumer prices. In supply chains and digital platforms, it can describe mechanisms or contracts that align downstream prices with upstream shifts, often through automatic price adjustments, dynamic pricing algorithms, or contractual price escalator clauses.

Variants

Common distinctions include full pass-through (prices move in lockstep with cost changes) versus partial pass-through (cost changes are only partially reflected), and time-lagged pass-through (delays between cost change and price adjustment).

Criticism and limitations

Achieving complete pass-through can be challenging due to competitive pressures, price stickiness, regulatory constraints, or customer sensitivity. In some cases, firms absorb costs or smooth price changes to avoid volatility.

See also

Price pass-through, price elasticity, inflation, dynamic pricing.

References

As a relatively new term, discussions of pricethough often cite broader work on price pass-through and cost transmission rather than dedicated, formal sources.