| Author: | Gil-Pareja, S. |
| Title: | Pricing to market behaviour in European car markets |
| Journal: | European Economic Review
2003 : DEC, VOL. 47:6, p. 945-962 |
| Index terms: | Markets Cars Pricing Currency Europe |
| Language: | eng |
| Abstract: | This paper investigates pricing to market (PTM) behaviour in European car markets for the period of 19931998, taking into account the role of invoicing currency. The results indicate that local currency price stability is a strong and pervasive phenomenon across products independently of the invoicing currency. The paper offers robustness checks, tests and arguments that justify the interpretation of this finding, at least in part, as evidence of PTM. It implies the existence of market segmentation and price discrimination, in spite of the completion of the single market programme on Jan. 1993. |
SCIMA