Pricing in firm-to-firm trade: evidence from a Danish multinational

Abstract We study pricing decisions in firm-to-firm trade. Using novel detailed transaction-level data from a Danish multinational firm, we uncover considerable price dispersion across countries, customers, and, surprisingly, within the same customer. In fact, find that transaction-specific characteristics are most important factors explaining variation. The extent of customer relationship can be affected by firm’s setting strategy. Our unique dataset allows us to examine consequences introducing lists containing recommended and minimum prices. prices converge towards price, decline if successfully narrow range for products purchases.