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Price Differences in the EC Car Market. Some Further Results

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  • Victor Ginsburgh
  • Geneviève Vanhamme

Abstract

We show that price differences across EC countries have seriously decreased in 1986-87 compared with 1983-84. It is however difficult to assess whether this evolution is due to exchange rate variations going "in the right direction" or to voluntary decisions made by producers to comply with EC regulations. We also show that exchange rate and production cost variations do not seem to be transmitted to export prices; exporters merely follow prices set by domestic producers.

Suggested Citation

  • Victor Ginsburgh & Geneviève Vanhamme, 1989. "Price Differences in the EC Car Market. Some Further Results," Annals of Economics and Statistics, GENES, issue 15-16, pages 137-149.
    • Handle: RePEc:adr:anecst:y:1989:i:15-16:p:137-149
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    File URL: http://www.jstor.org/stable/20075754
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    Cited by:

    1. Victor Ginsburgh & Shlomo Weber, 2002. "Product Lines and Price Discrimination in the European Car Market," Manchester School, University of Manchester, vol. 70(1), pages 101-114, January.
    2. Reis, Hugo J. & Santos Silva, J.M.C., 2006. "Hedonic prices indexes for new passenger cars in Portugal (1997-2001)," Economic Modelling, Elsevier, vol. 23(6), pages 890-908, December.
    3. 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.
    4. Gil-Pareja, Salvador, 2003. "Pricing to market behaviour in European car markets," European Economic Review, Elsevier, vol. 47(6), pages 945-962, December.
    5. Pinelopi Koujianou Goldberg & Frank Verboven, 1999. "The Evolution of Price Discrimination in the European Car Market," CIG Working Papers FS IV 99-14, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
    6. Séverine Haller & Guillaume Gaulier, 2003. "Les prix automobile dans l’Union européenne : y a-t-il eu convergence depuis 1993 ?," Économie et Prévision, Programme National Persée, vol. 157(1), pages 83-96.
    7. Bletschacher, Georg & Klodt, Henning, 1992. "Strategische Handels- und Industriepolitik: theoretische Grundlagen, Branchenanalysen und wettbewerbspolitische Implikationen," Open Access Publications from Kiel Institute for the World Economy 456, Kiel Institute for the World Economy (IfW Kiel).
    8. Arawomo, Damilola F. & Osigwe, Augustine C., 2016. "Nexus of fuel consumption, car features and car prices: Evidence from major institutions in Ibadan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 59(C), pages 1220-1228.
    9. Guillaume Gaulier & Séverine Haller, 2000. "The Convergence of Automobile Prices in the European Union: an Empirical Analysis for the Period 1993-1999," Working Papers 2000-14, CEPII research center.

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