Does marketing widen borders? Cross-country price dispersion in the European car market

Autor:	Georg Strasser, Eyal Dvir
Rok vydání:	2018
Předmět:	Producer price index Economics and Econometrics 05 social sciences Mid price Price discrimination Law of one price 0502 economics and business Market price Price dispersion Price level Business 050207 economics Marketing Finance Limit price 050205 econometrics
Zdroj:	Journal of International Economics. 112:134-149
ISSN:	0022-1996
DOI:	10.1016/j.jinteco.2018.02.008
Popis:	We study cross-country price differences in the European market for new passenger cars based on detailed pricing and technical data. Car prices in Europe converged until the year 2003, but not thereafter. Even then the price range of the median model across EU15 countries was close to 20%. This cross-country price differentiation is systematically linked to common product features, varies significantly across models and increases systematically with the market segment. Identical cars are positioned individually by country, for example via tailored feature bundles. Both the convergence of prices in anticipation of a future reduction of barriers to arbitrage and the systematic price differentials point to active pricing-to-market strategies that treat countries as marketing regions.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::9cfa2a936b46431b15cdb053b2e89910 https://doi.org/10.1016/j.jinteco.2018.02.008 Zobrazit plný text záznamu Full Text from ScienceDirect