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Why do Pre-Tax Car Prices Differ so much Across European Countries?
Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
World Trade Organisation, Geneva.
1995 (English)Report (Other academic)
Abstract [en]

The European car market is segmented by regulatory measures that support price discrimination by manufacturers and make consumer arbitrage difficult and costly. In a sample covering 43 models making up 80% of car sales in 11 countries in 1989-1992, we find that the average standard deviation of pre-tax prices across markets is 14%. The difference between the maximum price is typically about 50% of the average price. The price discrimination seems to be driven largely by taxes, tariffs and import quotas. For example, a quota raises the pre-tax price of the average Japanese car by 12% and of the average competing European car by 7%.

Place, publisher, year, edition, pages
Stockholm: IIES , 1995. , p. 30
Series
Seminar Paper / Institute for International Economic Studies, Stockholm University, ISSN 0347-8769 ; 591
Keywords [en]
price discrimination, market segmentation, voluntary export restraint
National Category
Economics
Identifiers
URN: urn:nbn:se:su:diva-41922OAI: oai:DiVA.org:su-41922DiVA, id: diva2:343060
Available from: 2010-08-12 Created: 2010-08-12 Last updated: 2010-08-12Bibliographically approved

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CiteExportLink to record
Permanent link

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Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf