研討日期	2021年3月22日上午10:20~ 12:30
研討地點	國立臺灣大學605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	Van-Chung Dong
參加人員	Van-Chung Don、林燕淑、施姵全、梁文榮、彭正浩、黃鴻、高國峯、Bui Dang Long、Damiana Simanjuntak、周宗翰、Suwannaja Sultiwan、賴宜君、陳彥勲、許至乙
摘要 Abstract of the paper	Admittedly, there are two popular approaches of imposing 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 optimal policy choice significantly relies on the relative market size between home and referencing countries. Without foreign price control, the average-price approach results in a higher (lower) level of profit (consumer surplus) relative to the lowest-price approach. From home government’s perspective, the average-price approach is chosen only if home market size is relatively large; while, the lowest-price approach is more socially desirable if it is middle among three countries. With foreign price control, the average-price approach generates a lower aggregate profit than the lowest-price approach does; but it is ambiguous in terms of consumer surplus. Comparably, price control enhances the possibility of adopting the average-price approach if home market size is large enough, otherwise ambiguous.