Author: Stephen MartinPublisher:
ISBN:
Category :
Languages : de
Pages : 27
Book Description
Product differentiation, market structure and exchange rate passthrough
Product Differentiation, Market Structure and Exchange Rate Passtrough
Author: Stephen MartinThe Economic Theory of Product Differentiation
Author: John BeathPublisher: Cambridge University Press
ISBN: 9780521335522
Category : Business & Economics
Languages : en
Pages : 220
Book Description
There are few industries in modern market economies that do not manufacture differentiated products. This book provides a systematic explanation and analysis of the widespread prevalence of this important category of products. The authors concentrate on models in which product selection is endogenous. In the first four chapters they consider models that try to predict the level of product differentiation that would emerge in situations of market equilibrium. These market equilibria with differentiated products are characterised and then compared with social welfare optima. Particular attention is paid to the distinction between horizontal and vertical differentiation as well as to the related issues of product quality and durability. This book brings together the most important theoretical contributions to these topics in a succinct and coherent manner. One of its major strengths is the way in which it carefully sets out the basic intuition behind the formal results. It will be useful to advanced undergraduate and graduate students taking courses in industrial economics and microeconomic theory.
Product Differentiation, Market Structure and Exchange Rate Passthrough
Author: Stephen MartinPublisher:
ISBN:
Category : Foreign exchange rates
Languages : en
Pages : 52
Book Description
Exchange Rates and Prices
Author: William R. SmithPublisher: Routledge
ISBN: 135175131X
Category : Business & Economics
Languages : en
Pages : 212
Book Description
Originally published in 1996. This study looks at the impact of exchange rate fluctuation on the pricing practices of foreign industries that import into the United States market. It presents several studies of the pass-through behaviour of over 100 disaggregated commodity groups with bi-lateral exchange rates. The book presents analysis of specific competitors and their individual pricing responses to exchange rate changes, adding significantly to pricing theory as well as being useful for marketers in predicting business responses.
Vertical Product Differentiation and Exchange Rate Pass-Through
Author: Dongmei HuPublisher:
ISBN:
Category :
Languages : en
Pages : 36
Book Description
In this paper, we investigate the impact of vertical product differentiation on exchange rate pass-through (ERPT). We define product vertical differentiation as a spectrum of products that range from high end to low end. Using a comprehensive dataset that includes highly disaggregated products traded between China and Japan from Jan 2000 to Dec 2008, we proxy product vertical differentiation with unit values of imports and exports and find that Japanese exports to China are more toward the high end while Chinese exports to Japan are more on the low end. Our further empirical tests show that exchange rate pass-through to Chinese Yuan selling prices of Japan imports is incomplete and is strongly affected by the degree of vertical differentiation. In particular, higher pass-through is observed where the vertical differentiation is larger between Japan import and China local-made, which suggests higher end Japan exporters are able to keep their Japanese Yen markup more stable.
Exchange Rate Fluctuations, Market Structure and the Pass-through Relationship
Author: Iñigo HergueraPublisher:
ISBN:
Category : Foreign exchange rates
Languages : en
Pages : 62
Book Description
Surviving the U.S. Import Market
Author: Tibor BesedesPublisher:
ISBN:
Category : Economics
Languages : en
Pages : 52
Book Description
"We examine the extent that product differentiation affects the duration of US import trade relationships. Applying nonparametric and semiparametric techniques to highly disaggregated product-level data we estimate that the hazard rate is at least 18 percent higher for homogenous goods than for differentiated products. Put another way, the median survival time for trade relationships involving differentiated products is five years as compared to two years for homogenous products. We find that our results are not only highly robust but often are strengthened under alternative specifications. For instance, if we define trade relationships using industry-level rather than product-level data we find that the hazard rate is 30-35 percent higher for homogenous goods than for differentiated products. We also find that the survival ranking across product types holds across individual industries. We show that dropping the smallest trade relationships further accentuates the differences among product types. We also control for the possible measurement error in measuring spell lengths and the role of multiple spell relationships and find that in all cases the differences among products types are greater than in our benchmark analysis"--NBER website
Market Structure, Price Pass-through and Welfare with Differentiated Products
Author: Donghun KimPublisher:
ISBN:
Category : Industrial organization (Economic theory)
Languages : en
Pages :
Book Description
Exchange Rates, Prices and International Trade in a Model of Endogenous Market Structure
Author: Hanno N. LustigPublisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
We suggest a new dynamic equilibrium approach that features product differentiation and endogenizes market structure at the same time. The model yields clear-cut predictions regarding the effects of small and large exchange rate shocks on the market structure, pass-through and international trade. First, we account for the asymmetric price adjustment process with respect to exchange rate shocks. Second, we discuss an array of conditions where short- and long-run international monetary neutrality is violated. We present in detail under which conditions imperfect competition is able to generate persistent and volatile real exchange rate deviations. Most predictions survive alternative market configurations.