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Author: | Kadiyali, V. |
Title: | Exchange rate pass-through for strategic pricing and advertising: an empirical analysis of the U.S. photographic film industry |
Journal: | Journal of International Economics
1997 : NOV, VOL. 43:3/4, p. 437-462 |
Index terms: | ECONOMICS EXCHANGE RATES PHOTOGRAPHY |
Language: | eng |
Abstract: | This paper builds a model in the "new empirical industrial organization" framework to estimate exchange rate pass-through in price and advertising. Price-cost margins, market structure and firm conduct are estimated endogenously, allowing for precise estimation of the degree of, and reasons for, incomplete pass-through. The author demonstrates that price and advertising pass-through are functions of demand, cost and market conduct in the short run. In the long run, the market conduct and cost technologies are, in turn, determined by the exchange rate movements. |
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