International Price Dispersion and Market Segmentation in Japan and the United States: Theory and Empirics

K.C. Fung, Alicia Garcia-Herrero and Francis Ng
Authors registered in the RePEc Author Service: Alicia Garcia Herrero

Microeconomics Working Papers from East Asian Bureau of Economic Research

Abstract: This paper focuses on the pricing behavior of Japanese and United States firms selling their identical products in New York City, Chicago, Osaka, and Tokyo. The authors utilize some simple models of international price dispersion and market segmentation that generate predictions about testable prices. The dataset, which consists of prices of identical products in the Japanese and American cities, was collected and accepted by both governments. Using this data, versions of international price dispersion theories are tested and some empirical evidence to support the view that simple international price dispersion models can partly explain the observed prices is found.

Keywords: International Price Dispersion; market segmentation; Japan; The United States; pricing behavior; firms; idetntial products (search for similar items in EconPapers)
JEL-codes: F12 F14 L11 L13 (search for similar items in EconPapers)
Date: 2013-04
New Economics Papers: this item is included in nep-sea
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Working Paper: International Price Dispersion and Market Segmentation in Japan and the United States: Theory and Empirics (2013)
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