International Price Dispersion and Market Segmentation in Japan and the United States: Theory and Empirics

Published By: Asian Development Bank Institute | Published Date: April, 01 , 2013

This paper focuses on the pricing behavior of Japanese and United States firms selling their identical products in New York City, Chicago, Osaka, and Tokyo. The authors utilize some simple models of international price dispersion and market segmentation that generate predictions about testable prices. The dataset, which consists of prices of identical products in the Japanese and American cities, was collected and accepted by both governments. Using this data, versions of international price dispersion theories are tested and some empirical evidence to support the view that simple international price dispersion models can partly explain the observed prices is found.

Author(s): K.C. Fung, Alicia Garcia Herrero, Francis Ng | Posted on: Feb 29, 2016 | Views() | Download (367)

Member comments


No Comments yet! Be first one to initiate it!

For permission to reproduce this paper in any way, please contact the parent institution.
Creative Commons License