Date of Award

2014

Degree Type

Thesis

Degree Name

Master of Science (MS)

Department

Economics and Finance

Abstract

The effect of the Honduran capital city Tegucigalpa on prices is tested through a series of comparative regressions of the prices of similar goods between the capital and outlying cities and towns. Goods that have many brands or production centers are found to have prices that vary more significantly between locations. The effect of the size of packaging of goods in some significant cases runs counterintuitive to traditional economic reasoning showing no effect or even in certain circumstances obtaining a premium for large packaging not proportional to the contents. The Honduran market also allows for an examination of the effect of Oligopoly on pricing for beverages compared to Competitive markets. It is found that as competition decreases intercity price stabilization occurs and premiums can be obtained for larger packaging after accounting for the contained amounts.

Included in

Finance Commons

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