%0 Report
        %A Hassink, Wolter
%A Schettkat, Ronald
        %T On Price-Setting for Identical Products in Markets without Formal Trade Barriers
        %D 2001
        %8 2001 Jun
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 315
        %U https://www.iza.org/publications/dp315
        %X 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.
        %K price discrimination
%K Price setting