; ; ; "ActiveFedora::Aggregation::ListSource" . a , ; "Understanding International Prices: Customers as Capital"; ; "batchuser@example.com"; "Drozd, Lucasz", "Nosal, Jaromir B."; "Federal Reserve Bank of Minneapolis"; "Real exchange rates ", "Import prices", "Marketing", "Price elasticity", "Price volatility", "Retail stores", "Market prices", "Foreign exchange rates", "Market share"; "F44 - International Business Cycles", "F31 - Foreign Exchange", "F14 - Empirical Studies of Trade", "E13 - General Aggregative Models: Neoclassical", "F41 - Open Economy Macroeconomics", "M31 - Marketing"; "This paper develops a theory of pricing-to-market driven by marketing and bargaining frictions. Our key innovation is a capital theoretic model of marketing in which relations with customers are valuable. In our model, producers search and form long-lasting relations with their customers, and marketing helps overcome the search frictions involved in forming such matches. In the context of international business cycle patterns, the model accounts for observations that are puzzles for a large class of theories: (i) pricing-to-market, (ii) positive correlation of aggregate real export and import prices, (iii) excess volatility of the real exchange rate over the terms of trade, and (iv) low short-run and high long-run price elasticity of international trade flows. The behavior of quantities is shown to be on par with standard international business cycle theories that, in contrast to our model, assume low intrinsic elasticity of substitution between domestic and foreign goods."^^; "2008-09-02"; "2019-06-04T17:17:04.870719249+00:00"^^; "https://doi.org/10.21034/sr.411"; ; "https://creativecommons.org/licenses/by-nc/4.0/"; "Thu Nov 7 21:34:41 2019"; "https://creativecommons.org/licenses/by-nc/4.0/"; "Research Paper"; "565", "199"; "Staff report (Federal Reserve Bank of Minneapolis. Research Department)"; "411"; "Foreign exchange rates", "Market prices", "Retail stores", "Price volatility", "Import prices", "Price elasticity", "Real exchange rates ", "Market share", "Marketing"; ; ; ; ; "Federal Reserve Bank of Minneapolis. Research Department"; "Published in: _American Economic Review_ (Vol. 102, No. 1, February 2012, pp. 364-395) https://doi.org/10.1257/aer.102.1.364."^^; ; "Publication" . ; .