Abstract
This paper uses producer quality information to investigate whether firms segment markets and adapt product quality and prices according to destination country characteristics. Using detailed price and quality data for Brazilian exporters over time, the results document quality-based market segmentation, by which firms raise quality and prices to high-income destinations. A major exchange rate shock and further robustness analysis reinforce the hypothesis that adjustments in quality and prices happen within the firm and that differences in prices across destinations may be driven by investments in product quality and demand for high quality. (C) 2016 Elsevier B.V. All rights reserved.
| Item Type: | Journal article |
|---|---|
| Faculties: | Economics > Chairs > Seminar for International Trade Theory and Trade Policy |
| Subjects: | 300 Social sciences > 330 Economics |
| JEL Classification: | F12, F14 |
| ISSN: | 0022-1996 |
| Language: | English |
| Item ID: | 43480 |
| Date Deposited: | 27. Apr 2018, 08:04 |
| Last Modified: | 04. Nov 2020, 13:18 |
Actions (login required)
- View Item
