On-the-match price renegotiation: Evidence from Pakistan’s import data

Zara Liaqat, Karrar Hussain and Bilal M. Khan

Economics Letters, 2021, vol. 202, issue C

Abstract: Using matched importer–exporter transaction level trade data, this study offers evidence quantifying the extent of price dispersion within a foreign seller across importing firms in Pakistan. Furthermore, we examine the key mechanisms describing the pricing strategy of foreign sellers of narrowly defined product categories. We show that, within a given firm-to-firm network, importers tend to renegotiate prices on-the-match, resulting in prices to drop over time. Although these price adjustments do not differ substantially for differentiated products, foreign sellers of differentiated goods charge a significantly higher price to their newly acquired and one-shot buyers.

Keywords: Price discrimination; Transactional relationships; Firm-to-firm trade (search for similar items in EconPapers)
JEL-codes: F1 F14 L14 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176521001142
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:202:y:2021:i:c:s0165176521001142

DOI: 10.1016/j.econlet.2021.109837

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().