@TechReport{iza:izadps:dp315,
            	author={Hassink, Wolter and Schettkat, Ronald},
            	title={On Price-Setting for Identical Products in Markets without Formal Trade Barriers},
            	year={2001},
	month={Jun},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={315},
            	url={https://www.iza.org/publications/dp315},
	abstract={This paper investigates price-setting for truly homogenous products sold in markets without any formal trade barriers. We use data from IKEA, a furniture company selling identical products in an identical shopping environment in different EU countries. We get four remarkable outcomes: 1) The law of one price does not hold. 2) Country-specific effects of non-tradable cost components are important. 3) Pricing to the market surely occurs but price discrimination is limited by incomplete information. 4) The unexplained part of between-country price variation for identical products is about 75% which leaves most of the inter-country price variation unexplained.},
	keywords={price discrimination;Price setting},
            }