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Price Discrimination and Pricing to Market Behavior of Canadian Canola Exporters

Jennifer Brown

American Journal of Agricultural Economics, 2001, vol. 83, issue 5, 1343-1349

Abstract: The role of exchange rate fluctuation on the pricing behavior of Canadian canola exporters to Japan, Mexico, and the U.S. is examined using a model identifying noncompetitive and exchange rate related pricing behavior. Price discrimination was identified for Canadian canola exports to the three destinations over the period of 1993'99. Results also suggest that Pricing to Market strategies were employed for Japanese imports. Canadian canola exporters used local currency price stabilization to dampen the effects of relative price changes in the Japanese currency, perhaps linked to the large size of Japanese imports relative to Mexico and the U.S. Copyright 2001, Oxford University Press.

Date: 2001
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