The Segmentation of International Markets: Evidence from The Economist / Michael M. Knetter.

Format:

Book

Author/Creator:

Knetter, Michael M.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w5878.

NBER working paper series no. w5878

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

The Segmentation of International Markets

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1997.

Summary:

This paper studies the behavior of newsstand prices for The Economist magazine in eight markets. Substantial variations in markups across markets are related to exchange rate fluctuations. Some of this variation can be traced to menu costs. However, much of the variation appears to result from intentional price discrimination across three regions: the U.S., the U.K., and Continental Europe and Scandinavia. Differences in demand elasticities can plausibly be attributed to differences in preferences and the set of competing products across markets. Segmentation of the markets is facilitated by the time-sensitive nature of the product which makes arbitrage very costly.

Notes:

Print version record

January 1997.