Country-of-Origin Premiums for Retailers in International Trades: Evidence from Ebay’s International Markets

Journal of Retailing, Vol. 86, No. 2, pp. 200-207

Posted: 8 Aug 2010

See all articles by Ye Hu

Ye Hu

University of Houston - Bauer College of Business

Xin Wang

Brandeis University

Date Written: 2010

Abstract

Using real-world transaction prices in the Internet auctionWeb site eBay’s U.S., U.K., and global markets, the authors study the price dispersion of homogeneous products related to the sellers’ country-of-origin. For both tangible and intangible products and services, sellers from the United States enjoy a price premium. This premium appears to stem from country-of-origin equity instead of trading risk or product quality. The findings of this research suggest potential profitable opportunities in international trade by employing the retailer’s country-of-origin as an arbitrage tool.

Keywords: Price premium, Retailing, Country-of-origin, International trade

Suggested Citation

Hu, Ye and Wang, Xin, Country-of-Origin Premiums for Retailers in International Trades: Evidence from Ebay’s International Markets (2010). Journal of Retailing, Vol. 86, No. 2, pp. 200-207, Available at SSRN: https://ssrn.com/abstract=1654510

Ye Hu (Contact Author)

University of Houston - Bauer College of Business ( email )

Houston, TX 77204-6021
United States

Xin Wang

Brandeis University ( email )

Mailstop 32
Waltham, MA 02454-9110
United States

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