Exchange Rate Pass-Through When Market Share Matters
TLDR
In this article, the authors investigate pricing to market when the exchange rate changes in cases where firms' future demands depend on their current market shares and show that profit maximizing foreign firms may either raise or lower their domestic currency export prices when the domestic exchange rate appreciates temporarily.Citations
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Competition when Consumers have Switching Costs: An Overview with Applications to Industrial Organization, Macroeconomics, and International Trade
TL;DR: In this article, the authors survey recent work on competition in markets in which consumers have costs of switching between competing firms' products, even when all products are functionally identical, and discuss the causes of switching costs, explain introductory offers and price wars.
Posted Content
Goods Prices and Exchange Rates: What Have We Learned?
Pinelopi Koujianou Goldberg,Pinelopi Koujianou Goldberg,Pinelopi Koujianou Goldberg,Michael M. Knetter,Michael M. Knetter +4 more
TL;DR: The authors showed that incomplete pass-through is a consequence of third-degree price discrimination and that the source of the border effect has not been clearly identified, and there is little evidence yet to suggest substantial market power is implied by the observed price discrimination.
ReportDOI
How Wide is the Border
TL;DR: In this article, the authors use C.I.P. data for U.S. cities and Canadian cities for 14 categories of consumer prices to examine the nature of the deviations from the law of one price.
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Exchange Rate Pass-Through into Import Prices
TL;DR: The authors provide cross-country and time series evidence on the extent of exchange rate pass-through into the import prices of 25 OECD countries, and conclude that macroeconomic variables have played only a minor role in accounting for the evolution of OECD passthrough over time.
Journal ArticleDOI
Exchange rate dynamics in a model of pricing-to-market
TL;DR: In this paper, the authors developed a general equilibrium exchange rate model consistent with the weak empirical evidence supporting the law of one price, where firms segment markets by country, and set prices in local currency of sale, referred to as pricing-to-market (PTM).
References
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Journal ArticleDOI
Information and Consumer Behavior
TL;DR: In this article, the authors argue that consumers lack full information about the prices of goods, but their information is probably poorer about the quality variation of products simply because the latter information is more difficult to obtain.
Book
A Treatise on Money
TL;DR: The applied theory of money and its fluctuation is discussed in detail in this paper, with a focus on the rate of investment and its changes over the last few decades, as well as the relation of central banks to one another.
Book
Markets with consumer switching costs
TL;DR: In this article, the authors show that the noncooperative equilibrium in an oligopoly with switching costs may be the same as the collusive outcome in an otherwise identical market without switching costs.
ReportDOI
Pricing to Market when the Exchange Rate Changes
TL;DR: In this article, the authors investigate the extent of "pricing to market" by foreign suppliers, and show that pricing to market is a real phenomenon, but not universal; in particular, evidence on German export prices suggests that stickiness of import prices is largely confined to machinery and transport equipment.