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Relative export prices and firm size in imperfect markets

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  • Lorenzo Pupillo
  • Klaus Zimmermann

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

Suggested Citation

  • Lorenzo Pupillo & Klaus Zimmermann, 1991. "Relative export prices and firm size in imperfect markets," Open Economies Review, Springer, vol. 2(3), pages 295-304, October.
  • Handle: RePEc:kap:openec:v:2:y:1991:i:3:p:295-304
    DOI: 10.1007/BF01886147
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    References listed on IDEAS

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    1. Jacquemin, Alexis & de Ghellinck, Elisabeth & Huveneers, Christian, 1980. "Concentration and Profitability in a Small Open Economy," Journal of Industrial Economics, Wiley Blackwell, vol. 29(2), pages 131-144, December.
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    4. Konig, Heinz & Nerlove, Marc & Oudiz, Gilles, 1981. "On the formation of price expectations : An analysis of business test data by log-linear probability models," European Economic Review, Elsevier, vol. 16(1), pages 103-138.
    5. Alexis Jacquemin, 1982. "Imperfect Market Structure And International Trade ‐ Some Recent Research," Kyklos, Wiley Blackwell, vol. 35(1), pages 75-93, February.
    6. Ross, Thomas W., 1988. "On the price effects of mergers with freer trade," International Journal of Industrial Organization, Elsevier, vol. 6(2), pages 233-246.
    7. Klaus F. Zimmermann, 1987. "Trade and Dynamic Efficiency," Kyklos, Wiley Blackwell, vol. 40(1), pages 73-87, February.
    8. Venables, Anthony J, 1985. "International Trade, Trade and Industrial Policy and Imperfect Competition: A Survey," CEPR Discussion Papers 74, C.E.P.R. Discussion Papers.
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