Measuring Pricing to Market in the Eurozone: The Case of the Automobile Industry

Jacint Balaguer, Vicente Orts and Jose C. Perneas

Open Economies Review, 2004, vol. 15, issue 3, 271 pages

Abstract: In this paper we measure the pricing to market for the main export products in the Eurozone automobile industry. Results reveal that significant markup adjustments exist following exchange rate variations. In general, these adjustments allow a strong stabilization of prices in buyer's currency terms. Nevertheless, the degree of pricing to market is quite heterogeneous and differs highly across both product categories and destination markets.

Date: 2004
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