Markups and export-pricing strategies
(2014) In Review of World Economics 150(2). p.221-239- Abstract
- Abstract in Undetermined
We analyze empirically export-price strategies across export destinations using detailed firm-product data. Most recent studies using disaggregated data to investigate why firms charge different prices for the same product on different markets focus on the cost component of prices and neglect the markup component. In this paper, we concentrate on the markup component and examine how variations in firms' export prices may reflect price discrimination by comparing the markup of firms with different pricing strategies. We make use of detailed firm-level data for exporting firms in the Swedish food sector consisting of both manufacturing and intermediary trading firms. The paper documents the export-price... (More) - Abstract in Undetermined
We analyze empirically export-price strategies across export destinations using detailed firm-product data. Most recent studies using disaggregated data to investigate why firms charge different prices for the same product on different markets focus on the cost component of prices and neglect the markup component. In this paper, we concentrate on the markup component and examine how variations in firms' export prices may reflect price discrimination by comparing the markup of firms with different pricing strategies. We make use of detailed firm-level data for exporting firms in the Swedish food sector consisting of both manufacturing and intermediary trading firms. The paper documents the export-price variations within the two sub-sectors and explores how different price strategies correlate with markups. The results offer new information beyond the fact that exporters tend to have a higher markup. In particular, we find that firms in the food-processing sector with a greater ability to discriminate across markets mark their products up even more. This result points to the importance of underlying firm decisions in order to explain differences in export premiums across firms. In addition, the results reveal that markups are a complex function of firm and destination characteristics, and that the relationship between markups and pricing strategies in the manufacturing sector is not necessarily observed in other sectors of the supply chain. (Less)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/3806362
- author
- Gullstrand, Joakim LU ; Olofsdotter, Karin LU and Thede, Susanna LU
- organization
- publishing date
- 2014
- type
- Contribution to journal
- publication status
- published
- subject
- keywords
- export prices, price discrimination, markups
- in
- Review of World Economics
- volume
- 150
- issue
- 2
- pages
- 221 - 239
- publisher
- Springer
- external identifiers
-
- wos:000339965800001
- scopus:84958037296
- ISSN
- 1610-2878
- DOI
- 10.1007/s10290-013-0178-x
- language
- English
- LU publication?
- yes
- id
- ca6b8f23-3bf4-4b46-8fe1-7490bc265710 (old id 3806362)
- alternative location
- http://link.springer.com/article/10.1007%2Fs10290-013-0178-x
- date added to LUP
- 2016-04-01 14:59:12
- date last changed
- 2022-03-14 08:44:28
@article{ca6b8f23-3bf4-4b46-8fe1-7490bc265710,
abstract = {{Abstract in Undetermined<br/>We analyze empirically export-price strategies across export destinations using detailed firm-product data. Most recent studies using disaggregated data to investigate why firms charge different prices for the same product on different markets focus on the cost component of prices and neglect the markup component. In this paper, we concentrate on the markup component and examine how variations in firms' export prices may reflect price discrimination by comparing the markup of firms with different pricing strategies. We make use of detailed firm-level data for exporting firms in the Swedish food sector consisting of both manufacturing and intermediary trading firms. The paper documents the export-price variations within the two sub-sectors and explores how different price strategies correlate with markups. The results offer new information beyond the fact that exporters tend to have a higher markup. In particular, we find that firms in the food-processing sector with a greater ability to discriminate across markets mark their products up even more. This result points to the importance of underlying firm decisions in order to explain differences in export premiums across firms. In addition, the results reveal that markups are a complex function of firm and destination characteristics, and that the relationship between markups and pricing strategies in the manufacturing sector is not necessarily observed in other sectors of the supply chain.}},
author = {{Gullstrand, Joakim and Olofsdotter, Karin and Thede, Susanna}},
issn = {{1610-2878}},
keywords = {{export prices; price discrimination; markups}},
language = {{eng}},
number = {{2}},
pages = {{221--239}},
publisher = {{Springer}},
series = {{Review of World Economics}},
title = {{Markups and export-pricing strategies}},
url = {{http://dx.doi.org/10.1007/s10290-013-0178-x}},
doi = {{10.1007/s10290-013-0178-x}},
volume = {{150}},
year = {{2014}},
}