PRICING TO MARKET WITH TRANSACTIONS DENOMINATED IN A COMMON CURRENCY

Authors
PICK DH CARTER CA
Citation
Dh. Pick et Ca. Carter, PRICING TO MARKET WITH TRANSACTIONS DENOMINATED IN A COMMON CURRENCY, American journal of agricultural economics, 76(1), 1994, pp. 55-60
Citations number
19
Categorie Soggetti
Economics,"AgricultureEconomics & Policy
Journal title
American journal of agricultural economics → ACNP
ISSN journal
00029092
Volume
76
Issue
1
Year of publication
1994
Pages
55 - 60
Database
ISI
SICI code
0002-9092(1994)76:1<55:PTMWTD>2.0.ZU;2-I
Abstract
We present a model with two exporters who ship a differentiated commod ity to the same import destination. All pricing occurs in a common cur rency, that of the home exporter. We show that the foreign-exporter to home-exporter exchange rate can influence the home exporter's pricing decision. It has been previously argued that only the importer to hom e-exporter exchange rate matters to the home exporter.