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Markups and export-pricing strategies
Department of Economics, Lund University, Lund, Sweden.
Department of Economics, Lund University, Lund, Sweden.
Department of Economics, Lund University, Lund, Sweden.ORCID iD: 0000-0002-7540-9295
2014 (English)In: Review of World Economics, ISSN 1610-2878, E-ISSN 1610-2886, Vol. 150, no 2, p. 221-239Article in journal (Refereed) Published
Abstract [en]

We analyze empirically export-price strategies across export destinations using detailed firm-product data. Most recent studies using disaggregated data to investigate why firms charge different prices for the same product on different markets focus on the cost component of prices and neglect the markup component. In this paper, we concentrate on the markup component and examine how variations in firms' export prices may reflect price discrimination by comparing the markup of firms with different pricing strategies. We make use of detailed firm-level data for exporting firms in the Swedish food sector consisting of both manufacturing and intermediary trading firms. The paper documents the export-price variations within the two sub-sectors and explores how different price strategies correlate with markups. The results offer new information beyond the fact that exporters tend to have a higher markup. In particular, we find that firms in the food-processing sector with a greater ability to discriminate across markets mark their products up even more. This result points to the importance of underlying firm decisions in order to explain differences in export premiums across firms. In addition, the results reveal that markups are a complex function of firm and destination characteristics, and that the relationship between markups and pricing strategies in the manufacturing sector is not necessarily observed in other sectors of the supply chain.

Place, publisher, year, edition, pages
Springer, 2014. Vol. 150, no 2, p. 221-239
Keywords [en]
Export prices, Price discrimination, Markups
National Category
Economics
Identifiers
URN: urn:nbn:se:oru:diva-83221DOI: 10.1007/s10290-013-0178-xISI: 000339965800001Scopus ID: 2-s2.0-84958037296OAI: oai:DiVA.org:oru-83221DiVA, id: diva2:1440900
Available from: 2020-06-15 Created: 2020-06-15 Last updated: 2020-06-15Bibliographically approved

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Thede, Susanna

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CiteExportLink to record
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  • apa
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  • de-DE
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