Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/174973
Authors: 
Ishikawa, Jota
Morita, Hodaka
Mukunoki, Hiroshi
Year of Publication: 
2018
Series/Report no.: 
CESifo Working Paper 6850
Abstract: 
This study explores the effect of parallel imports (PIs) when the producer may discriminate repair and maintenance services against PI units. This service discrimination weakens intra-brand competition and reduces the degree of price convergence between countries. If the producer makes costly activities to improve the quality of the good, permitting PIs in the presence of the service discrimination could lower the quality, because lower quality leads to a larger price gap. Consequently, it is possible that prices increase, consumers lose, and welfare deteriorates in both countries. This negative welfare effect is more likely to emerge as trade liberalization proceeds.
Subjects: 
parallel imports
service discrimination
goods quality
welfare
trade liberalization
JEL: 
F12
F13
F10
D42
L41
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.