Country-of-Origin Premiums for Retailers in International Trades: Evidence from eBay's International Markets

Ye Hu and Xin Wang

Journal of Retailing, 2010, vol. 86, issue 2, 200-207

Abstract: Using real-world transaction prices in the Internet auction Web site eBay's U.S., U.K., and global markets, the authors study the price dispersion of homogeneous products related to the sellers’ country-of-origin. For both tangible and intangible products and services, sellers from the United States enjoy a price premium. This premium appears to stem from country-of-origin equity instead of trading risk or product quality. The findings of this research suggest potential profitable opportunities in international trade by employing the retailer's country-of-origin as an arbitrage tool.

Keywords: Price premium; Retailing; Country-of-origin; International trade (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jouret:v:86:y:2010:i:2:p:200-207

DOI: 10.1016/j.jretai.2010.02.002

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