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Pricing strategy, mark-up adjustment and foreign competition in the car industry
Department of Economics, University of Örebro, SE-701 82, Örebro, Sweden.
University of Skövde, School of Technology and Society.
2005 (English)In: International Journal of Automotive Technology and Management: IJATM, ISSN 1470-9511, Vol. 5, no 3, 305-319 p.Article in journal (Refereed) Published
Abstract [en]

This paper examines, empirically, the impact of exchange rate fluctuations and foreign competition on pricing strategy in the car industry. The study shows how the Swedish car export prices react to exchange rate changes and market conditions in the five major destination markets (France, Germany, Japan, the UK, and the USA). It has been demonstrated, through non-stationary panel analysis, that the Swedish export prices in the car industry change but not in proportion to exchange rate changes. The evidence reveals that price adjustments are associated with stabilisation of local currency prices. Our findings also show that the pricing behaviour of the Swedish car exporters varies across destination markets and such variations could be related to market-specific characteristics and market structure.

Place, publisher, year, edition, pages
InderScience Publishers, 2005. Vol. 5, no 3, 305-319 p.
Identifiers
URN: urn:nbn:se:his:diva-1803DOI: 10.1504/IJATM.2005.008223Scopus ID: 2-s2.0-30344453956OAI: oai:DiVA.org:his-1803DiVA: diva2:32079
Available from: 2007-09-03 Created: 2007-09-03 Last updated: 2013-04-09Bibliographically approved

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Publisher's full textScopushttp://www.inderscience.com/offer.php?id=8223

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CiteExportLink to record
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Citation style
  • apa
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  • modern-language-association-8th-edition
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  • de-DE
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  • Other locale
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Output format
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