2006–2010

Vertical Distribution, Parallel Trade, and Price Divergence in Integrated Markets

Särtryck nr 2007:19

Författare: Ganslandt, Mattias och Keith E. MaskusÅr: 2007 Publikation: European Economic Review Årgång (nr): 51 (4) Sidor: 943–970


We develop a model of vertical pricing in which an original manufacturer sets wholesale prices in two markets that are integrated at the distributor level by parallel imports (PI). The manufacturing firm needs to set these two prices to balance three competing interests: restricting competition in the PI-recipient market, avoiding resource wastes due to actual trade, and reducing the double-markup problem in the PI-source nation. These tradeoffs imply the counterintuitive result that retail prices could diverge as a result of declining trading costs, even as the volume of PI increases. Thus, in some circumstances it may be misleading to think that permitting PI is an unambiguous force for price integration.


Referens:
Mattias Ganslandt och Keith E. Maskus (2007), "Vertical Distribution, Parallel Trade, and Price Divergence in Integrated Markets". European Economic Review 51(4), 943–970.

Aktuell forskare

Martin Ljunge

Forskningsområden: Socialekonomi, offentlig ekonomi och arbetsmarknadsekonomi.

Några av de frågor Martin Ljunge försöker besvara i sin forskning:

  • Hur påverkar tillit individers hälsa och välstånd?
  • Har välfärdsstaten långsiktiga effekter på beteenden?

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