Pricing to Firm: An Analysis of Firm- and Product-Level Import Prices

@inproceedings{Halpern2007PricingTF,
  title={Pricing to Firm: An Analysis of Firm- and Product-Level Import Prices},
  author={L{\'a}szl{\'o} Halpern and Mikl{\'o}s Koren},
  year={2007}
}
We use Hungarian Customs data on product-level imports and exports of manufacturing firms to document that the import price of a particular product varies substantially across buying firms. Importantly, we can relate the level of import prices to firm characteristics such as size, foreign ownership and market power. We develop a theory of ‘pricing to firm’ (PTF), where markups depend on the technology and competitive environment of the buyer. The predictions of the model are confirmed by the… CONTINUE READING

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