TY  - RPRT
        AU  - Hassink, Wolter
AU  - Schettkat, Ronald
        TI  - On Price-Setting for Identical Products in Markets without Formal Trade Barriers
        PY  - 2001/Jun/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 315
        UR  - https://www.iza.org/publications/dp315
        AB  - 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.
        KW  - price discrimination
KW  - Price setting
        ER  -