On-the-match price renegotiation: Evidence from Pakistan’s import data

C-Tier
Journal: Economics Letters
Year: 2021
Volume: 202
Issue: C

Authors (3)

Liaqat, Zara (not in RePEc) Hussain, Karrar (American University in Bulgari...) Khan, Bilal M. (not in RePEc)

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Using matched importer–exporter transaction level trade data, this study offers evidence quantifying the extent of price dispersion within a foreign seller across importing firms in Pakistan. Furthermore, we examine the key mechanisms describing the pricing strategy of foreign sellers of narrowly defined product categories. We show that, within a given firm-to-firm network, importers tend to renegotiate prices on-the-match, resulting in prices to drop over time. Although these price adjustments do not differ substantially for differentiated products, foreign sellers of differentiated goods charge a significantly higher price to their newly acquired and one-shot buyers.

Technical Details

RePEc Handle
repec:eee:ecolet:v:202:y:2021:i:c:s0165176521001142
Journal Field
General
Author Count
3
Added to Database
2026-02-02