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Price Discrimination in International Trade

Student: Belashov Artem

Supervisor: Ekaterina Krekhovets

Faculty: Faculty of Economics

Educational Programme: Economics (Bachelor)

Final Grade: 10

Year of Graduation: 2019

This paper is devoted to the study of the strategy of price discrimination where producer sets different prices on similar goods. The purpose of the work is focused on the identification and analysis of factors that influence on pricing of goods traded on the international market. One of the main features of the paper is that in empirical part of the research uses databased of a worldwide known online fashion retailer Yoox Net-A-Porter Group (YNAP) that contains prices on more than 150 000 goods that are traded in many countries. The study includes an overview of the basic prerequisites and conditions for the emergence of price discrimination and the development of a multi-factor model. Our model explains the dependence of the price of goods traded on the external market, from various geographical and economic factors. It is expected that company Yoox selling goods to the international market sets the price according to the global common factors and follows a strategy of price discrimination. The conclusion can also be drawn that results can be used in the future to assess the effectiveness of pricing policy and strategy.

Full text (added May 24, 2019)

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