Incomplete exchange-rate pass-through and imperfect competition: The effect of local production

Article Abstract:

The effects of changes in prices as a result of changes in production costs due to exchange-rate fluctuations are examined using a model that utilizes data taken from the US automobile market. The 'pricing to market' phenomenon is also studied to determine possible imperfections in trade. Results show that Japanese carmakers pass increase in production costs to US buyers. Moreover, carmakers with production plants in both US and Japan pass only a small part of cost increases compared to carmakers that manufacture in a single location.

MISCELLANEOUS MANUFACTURING INDUSTRIES, Manufacturing NEC, All Other Miscellaneous Manufacturing, Motor vehicles and car bodies, Automobiles, Automobile Manufacturing, Models, Manufacturing industry, Manufacturing industries, Economic aspects, Finance, Foreign exchange, Foreign exchange rates, Automobile industry, Costs, Industrial, Industrial costs

---

Price-matching policies and entry

Article Abstract:

Research was conducted to examine the effects of the use of price-matching policies on entry decisions in a spatial free-entry model. The objective was to prove that, in a spatial free-entry model, the impact of a price-matching policy are an increase in the number of sellers, a decrease in consumer surplus and social welfare and an increase in prices. Results suggest that in a price-matching equilibrium, an increase in the number of firms entering the market leads to a rise in prices.

United Kingdom, Retail Trade, Pricing Policy, Statistical Data Included, Research, Retail industry, Pricing

---

Similar abstracts:

• Abstracts: Habit persistence, heterogeneous tastes, and imperfect competition. Buying frenzies and seller-induced excess demand
• Abstracts: Equilibrium real exchange rates: closed-form theoretical solutions and some empirical evidence. Real exchange rates under the gold standard: can they be explained by the trend break model?
• Abstracts: Persistence in foreign exchange rates. Some international evidence on the stochastic behavior of interest rates
• Abstracts: Academics and economic developers: the challenge of cross-cultural understanding. The state's role in economic development education: some existing models
• Abstracts: Retaining downtown business via business succession. Creating a local leadership development program

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.