Markups, quality, and trade costs

This paper examines how trade costs induced by geographic distance or bilateral tariffs impact the markups of exports differentiated quality. It relies on a data set that combines Argentinean firm-level wine with experts’ ratings as measure Exporters price discriminate across destinations raising in more distant markets, and lowering them high-tariff countries. However, response to changes is heterogeneous weaker for higher quality exports. These empirical patterns can be predicted models featuring demand functions convex than log-concave, but less superconvex. They demonstrate variation export unit values markets not only driven differences also markup conditional