Relative export prices and firm size in imperfect markets

Lorenzo Pupillo and Klaus Zimmermann ()

Open Economies Review, 1991, vol. 2, issue 3, 295-304

Abstract: This paper contributes to the rising field in international trade and industrial organization. A vast sample of Italian micro data is used to study the behavior of relative export prices in imperfect markets. It is shown that relative export prices, the relation of prices a firm charges on export and domestic markets, are, in general, downward biased. Moreover, relative export prices depend negatively on firm size and market concentration, but positively on the average export share of the industry. This indicates that markets are segmented and firms are able to discriminate prices. Copyright Kluwer Academic Publishers 1991

Keywords: imperfect markets; export activity; price discrimination; probit analysis (search for similar items in EconPapers)
Date: 1991
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DOI: 10.1007/BF01886147

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