Files
Abstract
This paper investigates the strategic pricing to Euroland as it is implemented by exporters of 18 countries (Eurozone and non Eurozone). Initial findings support that general export-prices convergence is faster within Eurozone then elsewhere and seems to have accelerated in the Euro-age. The average mark-up variations in reaction to exchange rate evolution are studied, based on theoretically founded premises, to shore up the idea that Euro-market's structure underwent modifications as consequence of the monetary union. Results suggest that firms have responded to exchange rate elimination irrespective of member status and proceeded to gauge across members pricing reaction to exchange rate fluctuations.