Liaqat Z, Hussain K, Khan BM (2021)
Publication Type: Journal article
Publication year: 2021
Book Volume: 202
Article Number: 109837
DOI: 10.1016/j.econlet.2021.109837
Using matched importer–exporter transaction level trade data, this study offers evidence quantifying the extent of price dispersion within a foreign seller across importing firms in Pakistan. Furthermore, we examine the key mechanisms describing the pricing strategy of foreign sellers of narrowly defined product categories. We show that, within a given firm-to-firm network, importers tend to renegotiate prices on-the-match, resulting in prices to drop over time. Although these price adjustments do not differ substantially for differentiated products, foreign sellers of differentiated goods charge a significantly higher price to their newly acquired and one-shot buyers.
APA:
Liaqat, Z., Hussain, K., & Khan, B.M. (2021). On-the-match price renegotiation: Evidence from Pakistan's import data. Economics letters, 202. https://doi.org/10.1016/j.econlet.2021.109837
MLA:
Liaqat, Zara, Karrar Hussain, and Bilal M. Khan. "On-the-match price renegotiation: Evidence from Pakistan's import data." Economics letters 202 (2021).
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