研討日期

202097日上午10:20~ 12:30

研討地點

國立臺灣大學710討論室

主講題目

Title of the paper

External Reference Pricing and Foreign Price Control: Lowest-Price Approach and Average-Price Approach

作者

Authors of the paper

Van-Chung Dong, Yan-Shu Lin, and Pei-Cyuan Shih

文獻出處

Journal, vol.(issue), pp

Working paper

主講人

Dong Van Chung

參加人員

Dong Van Chung、王羿傑、施全、梁文榮、張瑞雲、黃鴻、許雅媚、洪珮瑜、Bui Dang LongDong Van Chung、周宗翰、陳彥勳、許至乙

摘要

Abstract of the paper

Admittedly, there are two popular approaches of imposing an external reference pricing (ERP), i.e. lowest-price approach or average-price approach. This paper sets out a simple three-country model to examine how home government makes a decision of ERP approach in context of international trade. It shows that the optimal policy choice significantly relies on the relative market size between home and referencing countries. Without foreign price control, the average price can be better only if the home market size is relatively similar to the foreign countries; otherwise, the lowest-price approach is more socially desirable. With a foreign price control, the average-price approach has higher possibility to be chosen by the home government if the home market size is relatively large; if not, it hinges on the relative market sizes.