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Modelling price behaviour in the European car market: 1970-1985

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  • Mertens, Yves

Abstract

This paper is concerned with the determinants of car prices in four European countries: Belgium, France, Germany and the United Kingdom, over the period 1970-1985. The main focus of the study lies in explaining the levels of, and the changes in, the large price differentials observed across the several countries, and in exploring the impact of the trade restrictions imposed on Japanese car exports to Europe over the period in question. The main finding is that these two sources of price differentials play a substantive role in explaining observed differentials. The second major theme relates to the effects of the increase of Japanese import penetration and the resulting trade restrictions.

Suggested Citation

  • Mertens, Yves, 1990. "Modelling price behaviour in the European car market: 1970-1985," LSE Research Online Documents on Economics 6787, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:6787
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    File URL: http://eprints.lse.ac.uk/6787/
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    Citations

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    Cited by:

    1. Pinelopi Koujianou Goldberg & Frank Verboven, 1999. "The Evolution of Price Discrimination in the European Car Market," CIG Working Papers FS IV 99-14, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
    2. Dvir, Eyal & Strasser, Georg, 2018. "Does marketing widen borders? Cross-country price dispersion in the European car market," Journal of International Economics, Elsevier, vol. 112(C), pages 134-149.

    More about this item

    Keywords

    European car market; car prices; price differentials; trade restrictions;
    All these keywords.

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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