On-the-match price renegotiation: Evidence from Pakistan's import data

Liaqat Z, Hussain K, Khan BM (2021)

Publication Type: Journal article

Publication year: 2021

Journal

Economics letters Elsevier

Book Volume: 202

Article Number: 109837

DOI: 10.1016/j.econlet.2021.109837

Abstract

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.

Authors with CRIS profile

Karrar Hussain Lehrstuhl für Volkswirtschaftslehre: Wirtschaft und Gesellschaft des Nahen Ostens

Involved external institutions

University of Waterloo (UW) CA Canada (CA) University of International Business and Economics Beijing (UIBE) CN China (CN)

How to cite

APA:

Liaqat, Z., Hussain, K., & Khan, B.M. (2021). On-the-match price renegotiation: Evidence from Pakistan's import data. Economics letters, 202. https://dx.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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