Basile, Roberto; Nardis, Sergio de; Girardi, Alessandro - In: Review of World Economics (Weltwirtschaftliches Archiv) 148 (2012) 4, pp. 595-615
We build a pricing-to-market (PTM) model with firm heterogeneity, which allows for imperfect competition and market segmentation in the presence of flexible exchange rates, horizontal and vertical differentiation and different tastes of consumers in destination markets. We derive firm’s...