Economics, Econometrics and Finance
4 years ago

Online Borders Drive Price Disparities, Hindering International Trade Growth

1 view
National Bureau of Economic Research
Virtual Borders: Online Nominal Rigidities and International Market Segmentation
Jean Boivin, Robert Clark, Nicolas Vincent

Paper Summary

The article explores how online book prices are affected by international borders and exchange rate fluctuations. The researchers analyzed data from US and Canadian retailers and found that prices for the same books vary significantly, with little response to currency changes. They suggest that market segmentation plays a role in this price rigidity and dispersion.

Related papers

Business, Management and Accounting
8 years ago

Price dispersion in e-markets may increase with lower search costs.

Economic Analysis
Two-Sided Markets
Mechanism Design
2 views
Economics, Econometrics and Finance
8 years ago

Retail Prices Unpredictable: Consumers Face Fluctuating Costs in Grocery Stores

Market Dynamics
Monetary Models
Economic Analysis
3 views
Economics, Econometrics and Finance
4 years ago

Online book prices remain rigid across borders, hindering international trade.

Econophysics
Asset Pricing
Monetary Models