One TV, One Price?

29 Pages Posted: 19 Dec 2010

See all articles by Jean M. Imbs

Jean M. Imbs

Paris School of Economics (PSE); Centre for Economic Policy Research (CEPR); Swiss Finance Institute

Haroon Mumtaz

University of London - School of Sciences

Morten O. Ravn

European University Institute - Economics Department (ECO); London Business School - Department of Economics; University of Southampton; Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER)

Hlne Rey

affiliation not provided to SSRN

Multiple version iconThere are 4 versions of this paper

Abstract

We study television prices across European countries and regions. Quality as measured by observable characteristics of televisions accounts for a large share of the international dispersion in prices. Rich economies tend to consume higher-quality goods, but sizeable international price differentials exist even for identical televisions. The valuation of brands differs significantly across borders. EMU countries display lower price dispersion but not necessarily because of the single currency. Absolute price differentials and relative price volatility increase with exchange rate volatility, but not with transport costs. Exchange rate pass-through is low in the short run but high in the long run.

Keywords: International and regional price differences, border effect, brand perception

JEL Classification: F15, F23, F41

Suggested Citation

Imbs, Jean M. and Mumtaz, Haroon and Ravn, Morten O. and Rey, Hlne, One TV, One Price?. Scandinavian Journal of Economics, Vol. 112, No. 4, pp. 753-781, 2010. Available at SSRN: https://ssrn.com/abstract=1727895 or http://dx.doi.org/10.1111/j.1467-9442.2010.01631.x

Jean M. Imbs (Contact Author)

Paris School of Economics (PSE) ( email )

48 Boulevard Jourdan
Paris, 75014 75014
France

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Swiss Finance Institute ( email )

c/o University of Geneve
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1211 Geneva, CH-6900
Switzerland

Haroon Mumtaz

University of London - School of Sciences ( email )

London, WC1E 7HX
United Kingdom

Morten O. Ravn

European University Institute - Economics Department (ECO) ( email )

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Italy

London Business School - Department of Economics ( email )

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University of Southampton ( email )

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Centre for Economic Policy Research (CEPR)

London
United Kingdom

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Hlne Rey

affiliation not provided to SSRN

No Address Available

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