TY  - JOUR
AU  - Knetter,Michael M.
TI  - The Segmentation of International Markets: Evidence from The Economist
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 5878
PY  - 1997
Y2  - January 1997
UR  - http://www.nber.org/papers/w5878
L1  - http://www.nber.org/papers/w5878.pdf
N1  - Author contact info:
Michael M. Knetter
School of Business
University of Wisconsin, Madison
5110 Grainger Hall
975 University Avenue
Madison, WI  53706-1323
Tel: 608/262-1758
Fax: NA
E-Mail: mike.knetter@supportuw.org
AB  - This paper studies the behavior of newsstand prices for The Economist magazine in eight markets.  Substantial variations in markups across markets are related to exchange rate fluctuations. Some of this variation can be traced to menu costs.  However, much of the variation appears to result from intentional price discrimination across three regions: the U.S., the U.K., and Continental Europe and Scandinavia.  Differences in demand elasticities can plausibly be attributed to differences in preferences and the set of competing products across markets. Segmentation of the markets is facilitated by the time-sensitive nature of the product which makes arbitrage very costly.
ER  -