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IKEA: Product, pricing, and pass-through

Marianne Baxter and Anthony Landry ()

Research in Economics, 2017, vol. 71, issue 3, 507-520

Abstract: With over 300 stores in 40 countries, IKEA is a major international presence in retail housewares and furnishings. IKEA publishes country-specific catalogs with local-currency prices guaranteed to hold for 1 year. This paper explores a new dataset of IKEA products and catalog prices covering six countries for the time period 1994–2010. The dataset, with over 140,000 observations, is uniquely poised to shed light on the way in which a large multinational retailer operates in a setting characterized by a very large number of identical goods which are priced in local currency in many countries. The goal of this paper is to document the choices made by IKEA in several related decision areas. In doing so, this paper provides evidence against which existing theories can be evaluated and revised in the light of this new information.

Keywords: IKEA; Law of One Price; Purchasing power parity; Multinational pricing; Product creation (search for similar items in EconPapers)
Date: 2017
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Related works:
Working Paper: IKEA: Product, Pricing, and Pass-Through (2013) Downloads
Journal Article: IKEA: product, pricing, and pass-through (2012) Downloads
Working Paper: IKEA: product, pricing, and pass-through (2012) Downloads
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