Evaluating the law of one price using micro panel data

Laurent Gobillon, François-Charles Wolff and Patrice Guillotreau

No 9586, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper investigates spatial variations in product prices using an exhaustive micro dataset on fish transactions. The data record all transactions between vessels and wholesalers that occur on local fish markets in France during the year 2007. Spatial disparities in fish prices are sizable, even after fish quality, time, seller and buyer unobserved heterogeneity have been taken into account. The price difference between local fish markets can be explained to some extent by distance, but mostly by a coast effect (analogous to a border effect in the literature on the law of one price) related to separate location on the Atlantic and Mediterranean coasts. In particular, fish and crustacean prices are 34% higher on the Mediterranean coast. The law of one price is verified for almost all species when considering only local fish markets on the Atlantic coast.

Keywords: Fish; Commodity price; Local markets; Panel data (search for similar items in EconPapers)
JEL-codes: L11 Q22 R32 (search for similar items in EconPapers)
Date: 2013-08
New Economics Papers: this item is included in nep-com and nep-opm
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Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Evaluating the law of one price using micro panel data (2013)
Working Paper: Evaluating the law of one price using micro panel data (2013)
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