Working Paper No. 702

Wholesale Price Discrimination and Parallel Imports

Published: April 13, 2007Pages: 38Keywords: Vertical Restraints; Parallel Imports; Market Integration; Price Discrimination; Competition PolicyJEL-codes: F15; K21; L14

Wholesale Price Discrimination and Parallel Imports Mattias Ganslandt and Keith E. Maskus


We develop a model of vertical pricing in which an original manufacturer sets wholesale prices in two markets integrated at the distributor level by parallel imports (PI). In this context we show that if competition policy requires uniform wholesale prices across locations it would push retail prices toward convergence as transportation costs fall. However, these retail prices could be higher than those induced without restrictions on prices charged to distributors. Thus, the competition policy may not be optimal for consumer welfare.

 

Integrating Immigrants into the Nordic Labour Markets

An Overall Perspective

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Denmark, Finland, Norway and Sweden face similar problems of integrating large groups of immigrants, especially low-educated ones from outside the EU, into their labour markets. In this volume, edited by Lars Calmfors, IFN, and Nora Sánchez Gassen in cooperation with researchers from across the Nordic Region analyse how labour market integration of immigrants can be promoted. 

About the book

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