IKEA: Product, Pricing, and Pass-Through
نویسندگان
چکیده
The multinational retailer IKEA represents a natural laboratory for studying international pricing and product cycle behavior. With 314 stores in 38 countries, IKEA is a major international presence in retail housewares and furnishings. IKEA is unique among homegoods retailers in its publication of annual catalog of prices guaranteed to hold for 1 year. This paper examines international pricing decisions of this multi-good, vertically-integrated producer using a newly created dataset of IKEA catalog prices. We provide new evidence on (i) product creation and destruction; (ii) the distribution of price changes; (iii) deviations from the law of one price; and (iv) exchange-rate pass-through.
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