Exchange rate pass-through for strategic pricing and advertising: An empirical analysis of the US photographic film industry

• 成果类型: Article
• 署名作者: Kadiyali, V
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/S0022-1996(97)00008-1
• 发表日期: 1997
• 页码: 437-461
• 关键词: Exchange rate; pass-through; pricing; Advertising; industry structure

摘要

This paper builds a model in the ''new empirical industrial organization'' framework [Bresnahan, T., 1989. Industries and Market Power. In: Schmalensee, R., Willig, R. (Eds.), Handbook of Industrial Organization. North Holland, Amsterdam.] to estimate exchange rate pass-through in price and advertising. Price-cost margins, market structure and firm conduct are estimated endogenously, allowing for precise estimation of the degree of, and reasons for, incomplete pass-through. I demonstrate that price and advertising pass-through are functions of demand, cost and market conduct in the short run. In the long run, the market conduct and cost technologies are, in turn, determined by the exchange rate movements. (C) 1997 Elsevier Science B.V.