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Modelling Price Behaviour in the European Car Market: 1970-1985

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  • Yves Mertens

Abstract

This paper is concerned with the determinants of car prices in four European countries: Belgium, France, Germany and the United Kingdom, over the period 1970-1985. The main focus of the study lies in explaining the levels of, and the changes in, the large price differentials observed across the several countries, and in exploring the impact of the trade restrictions imposed on Japanese car exports to Europe over the period in question. The main finding is that these two sources of price differentials play a substantive role in explaining observed differentials. The second major theme relates to the effects of the increase of Japanese import penetration and the resulting trade restrictions.

Suggested Citation

  • Yves Mertens, 1990. "Modelling Price Behaviour in the European Car Market: 1970-1985," STICERD - Economics of Industry Papers 01, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    • Handle: RePEc:cep:stieip:01
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    References listed on IDEAS

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    1. Davidson, Russell & Dewatripont, Mathias & Ginsburgh, Victor & Labbe, Martine, 1989. "On the welfare effects of anti-discrimination regulations in the EC car market," International Journal of Industrial Organization, Elsevier, vol. 7(2), pages 205-230, June.
    2. Victor Ginsburgh & Yves Mertens, 1985. "Product differentiation and discrimination in the European Community: the case of automobiles," ULB Institutional Repository 2013/1755, ULB -- Universite Libre de Bruxelles.
    3. Feenstra, Robert C., 1985. "Automobile prices and protection: The U.S.-Japan trade restraint," Journal of Policy Modeling, Elsevier, vol. 7(1), pages 49-68.
    4. Mertens, Yves & Ginsburgh, Victor, 1985. "Product Differentiation and Price Discrimination in the European Community: The Case of Automobiles," Journal of Industrial Economics, Wiley Blackwell, vol. 34(2), pages 151-166, December.
    5. Neven, Damien J & Phlips, Louis, 1985. "Discriminating Oligopolists and Common Markets," Journal of Industrial Economics, Wiley Blackwell, vol. 34(2), pages 133-149, December.
    6. Ginsburgh, V. & Vanhamme, G., 1988. "Price Discrimination In The Ec Car Market Some Further Results," Papers 8804, Universite Libre de Bruxelles - C.E.M.E..
    7. Victor Ginsburgh & Bentley MacLeod & Shlomo Weber, 1987. "Price Discrimination and Product Line Rivalry," Working Paper 702, Economics Department, Queen's University.
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    Cited by:

    1. Dvir, Eyal & Strasser, Georg, 2018. "Does marketing widen borders? Cross-country price dispersion in the European car market," Journal of International Economics, Elsevier, vol. 112(C), pages 134-149.
    2. Goldberg, P.K. & Verboven, F.L., 1999. "The Evolution of Price Discrimination in the European Car Market," Other publications TiSEM 78ee9b01-2794-4a7b-9147-a, Tilburg University, School of Economics and Management.

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