Why do Pre-tax Car Prices Differ so Much Across European Countries?
AbstractThe European car market is segmented by regulatory measures that support price discrimination by manufacturers and make consumer arbitrage difficult and costly. In a sample covering 43 models making up 80% of car sales in 11 countries in 1989-92, we find that the average standard deviation of pre-tax prices across markets is 14%. The difference between the maximum and minimum price is typically about 50% of the average price. The price discrimination seems to be driven largely by taxes, tariffs and import quotas. For example, a quota raises the pre-tax price of the average Japanese car by 12% and of the average competing European car by 7%.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1181.
Date of creation: May 1995
Date of revision:
Contact details of provider:
Postal: Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
Find related papers by JEL classification:
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F15 - International Economics - - Trade - - - Economic Integration
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Adolfson, Malin, 1999.
"Swedish Export Price Determination: Pricing to Market Shares?,"
Working Paper Series in Economics and Finance
306, Stockholm School of Economics.
- Adolfson, Malin, 1999. "Swedish Export Price Determination: Pricing to Market Shares?," Working Paper Series 96, Sveriges Riksbank (Central Bank of Sweden).
- Joseph F. Francois & Ian Wooton, 2007.
"Market structure and market access,"
Economics working papers
2007-06, Department of Economics, Johannes Kepler University Linz, Austria.
- Francois, Joseph & Wooton, Ian, 2005.
"Market Structure in Services and Market Access in Goods,"
CEPR Discussion Papers
5135, C.E.P.R. Discussion Papers.
- Joseph Francois & Ian Wooton, 2005. "Market Structure in Services and Market Access in Goods," The Institute for International Integration Studies Discussion Paper Series iiisdp80, IIIS.
- Joseph Francois & Ian Wooton, 2004. "Market Structure in Services and Market Access in Goods," Tinbergen Institute Discussion Papers 04-050/2, Tinbergen Institute.
- Einar Bowitz & Taran FÃ¦hn & Leo GrÃ¼nfeld & Knut Moum, 1997. "Can a Wealthy Economy Gain from an EU Membership? Adjustment Costs and Long Term Welfare Effects of Full Integrationâ€”The Norwegian Case," Open Economies Review, Springer, vol. 8(3), pages 211-231, July.
- repec:dgr:uvatin:2004050 is not listed on IDEAS
- Friberg, Richard, 1997. "Should the core fear the outs? Price setting practices and international monetary transmission," Working Paper Series in Economics and Finance 203, Stockholm School of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.