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Swedish Export Price Determination: Pricing to Market Shares?

Authors: Adolfson, Malin;

Swedish Export Price Determination: Pricing to Market Shares?

Abstract

The Swedish export price determination for automobiles and kraft paper to three destination countries, over the period 1980-1994, is investigated. Formal tests on an error correction model indicate results consistent with price discrimination in Swedish exports of both goods. The exporters use their market power for pricing to market, which is characterized by the concern for foreign conditions, and implies an incomplete exchange rate pass-through. The pricing behaviour seems to be determined by the development of market shares, in about half of the cases. The total pass-through to the local currency price within a year, that is the effect of an exchange rate change working through all variables and all interactions in the price determination, span between -85 % and +111 %.

Keywords

Cointegration, ddc:330, Pricing to market, Exchange rates, Pass-through, Cointegration; exchange rates; export prices; market shares; pass-through; pricing to market, Export prices, Cointegration; Exchange rates; Export prices; Market shares; Pass-through; Pricing to market, Market shares, E30, F41, F31, jel: jel:F31, jel: jel:E30, jel: jel:F41

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
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