We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
How linear is pricing-to-market? Empirical assessment of hysteresis and asymmetry of PTM.
- Authors
Fedoseeva, Svetlana; Werner, Laura
- Abstract
Pricing decisions of exporters who are facing imperfect competition in their destination markets might depend on exchange rate changes. While empirical literature often assumes that the impact of the exchange rate on the exporters' prices is linear and the markup adjustment does not depend on magnitude or direction of the exchange rate change (or allows for short-run asymmetries only), we question this statement and test for the long-run hysteresis and asymmetry of pricing-to-market (PTM). Using the German export beer market as an example, we show that both types of nonlinearities play an important role in PTM decisions.
- Subjects
GERMANY; PRICING; HYSTERESIS (Economics); FOREIGN exchange rates; DECISION making in business; BEER industry
- Publication
Empirical Economics, 2016, Vol 50, Issue 3, p1065
- ISSN
0377-7332
- Publication type
Article
- DOI
10.1007/s00181-015-0957-4