Abstract
Dynamic pricing equations are estimated using an error correction model, with data on a panel of 89 Australian manufacturing industries for the 14 years, 1971/72 through 1984/85. The overall pattern is consistent with prices approximately following a fixed mark-up rule in low concentration industries, while the mark-up factor in high concentration industries is strongly pro-cyclical. Also, in high concentration industries that are heavily exposed to import competition, the mark-up factor increases with prices of foreign competing products and with the general price level for domestic manufacturers.
| Original language | English |
|---|---|
| Pages (from-to) | 268-279 |
| Number of pages | 12 |
| Journal | Economic Record |
| Volume | 75 |
| Issue number | 230 |
| Publication status | Published - Sept 1999 |