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IKEA: product, pricing, and pass-through

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  • Marianne Baxter
  • Anthony Landry

Abstract

With over 300 stores in 40 countries, IKEA is a major international presence in retail housewares and furnishings. IKEA publishes country-specific catalogs with local-currency prices guaranteed to hold for 1 year. This paper explores a new dataset of IKEA products and catalog prices covering six countries for the time period 1994–2010. The dataset, with over 140,000 observations, is uniquely poised to shed light on the way in which a large multinational retailer operates in a setting characterized by a very large number of goods, distributed and priced in many countries. Thus, the goal of this paper is to document the choices made by IKEA in several related decision areas. In doing so, this paper provides evidence against which existing theories can be evaluated and revised in the light of this new information.

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Paper provided by Federal Reserve Bank of Dallas in its series Globalization and Monetary Policy Institute Working Paper with number 132.

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Date of creation: 2012
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Handle: RePEc:fip:feddgw:132

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Keywords: International trade ; Finance;

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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Can IKEA replace the BigMac or the Ipod?
    by Economic Logician in Economic Logic on 2013-01-24 16:10:00
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Cited by:
  1. Mark Witte & Rachel Williams, 2014. "Duopolists’ Retail Pricing Behavior in Multiple Markets," Journal of Industry, Competition and Trade, Springer, vol. 14(1), pages 67-81, March.
  2. Raphael Schoenle & Raphael Auer, 2012. "Market Structure and Pass-Through," 2012 Meeting Papers 61, Society for Economic Dynamics.
  3. Roberto Rigobon & Brent Neiman & Alberto Cavallo, 2013. "Product Introductions, Currency Unions, and the Real Exchange Rate," 2013 Meeting Papers 1357, Society for Economic Dynamics.
  4. Raphael S. Schoenle & Raphael A. Auer, 2013. "Market Structure and Exchange Rate Pass-Through," Working Papers 62, Brandeis University, Department of Economics and International Businesss School.
  5. Alberto Cavallo & Brent Neiman & Roberto Rigobon, 2012. "Currency Unions, Product Introductions, and the Real Exchange Rate," NBER Working Papers 18563, National Bureau of Economic Research, Inc.

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