Testing Two Models of Pricing and Protection with Canada/United States Data
Tim Hazledine
Working Paper from Economics Department, Queen's University
Abstract:
This paper reports tests of two models of pricing behaviour using cross-sectional data or relative Canadian/United States prices and costs, and on Canadian tariff protection and market structure. The main results are: 1) the market power model is statistically better supported than the law of one price; 2) Tariff protections matters, but only in association with seller concentration; 3) relative cost are most important in unconcentrated industries.
Pages: 19
Date: 1979
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Persistent link: https://EconPapers.repec.org/RePEc:qed:wpaper:366
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