Pricing-to-Market: Price Discrimination or Product Differentiation?
Nathalie Lavoie and
Qihong Liu ()
American Journal of Agricultural Economics, 2007, vol. 89, issue 3, 571-581
Abstract:
We employ a vertical differentiation model to examine the potential bias in pricing-to-market results when using export unit values aggregating differentiated products. Our results show that: (i) false evidence of pricing-to-market is always found when using unit values, whether the law of one price holds or not; and (ii) the size of the bias increases with the level of product differentiation. Our simulation results support those conceptual findings. Thus, some of the positive pricing-to-market results in the literature could be an artifact of the product heterogeneity embodied in unit values rather than evidence of imperfect competition. Copyright 2007, Oxford University Press.
Date: 2007
References: Add references at CitEc
Citations: View citations in EconPapers (20)
Downloads: (external link)
http://hdl.handle.net/10.1111/j.1467-8276.2006.01000.x (application/pdf)
Access to full text is restricted to subscribers.
Related works:
Working Paper: Pricing-to-Market: Price Discrimination or Product Differentiation? (2004) 
Working Paper: Pricing-to-Market: Price Discrimination or Product Differentiation? (2004) 
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:oup:ajagec:v:89:y:2007:i:3:p:571-581
Access Statistics for this article
American Journal of Agricultural Economics is currently edited by Madhu Khanna, Brian E. Roe, James Vercammen and JunJie Wu
More articles in American Journal of Agricultural Economics from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().