General framework for replicable and harmonised guidance [chapter]

2014 Eurostat-OECD Methodological Guide for Developing Producer Price Indices for Services  
It is generally assumed in economic analysis that whenever a difference in price is found between two goods and services that appear to be physically identical there must be some other factor, such as location, timing or conditions of sale that is introducing a difference in quality. Otherwise, it can be argued that the difference could not persist, as rational purchasers would always buy lower priced items and no sales would take place at higher prices. The 2008 SNA further states in paragraph
more » ... 15.75 that "If there is doubt as to whether the price differences constitute price discrimination, it seems preferable to assume that they reflect quality differences...". 26 Equally, 2008 SNA rules identify location as a price determining factor. 27 Conceptually therefore, prices of the "same" service provided by a business enterprise in two locations should not be averaged but treated as different services.
doi:10.1787/9789264220676-7-en fatcat:dcioxff2jbcp5lqifoacvntqyi