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But French prices are not out of line with those in the rest of Europe (see chart).
American prices, French prices and/or the dollar-franc exchange rate would then adjust until the real exchange rate approached one.
British skiers just didn't buy it: they weren't prepared to pay French prices for what they still regarded as a budget destination.
The problem with the principality's image was that a location traditionally regarded as a budget destination can't suddenly charge French prices – a view that, a spokesman for Andorra was eager to tell me, was particular to the UK.
However, there were concerns such savings would not be passed on to consumers: France recently reduced its VAT rate on sanitary products from 20%to5.5%5% but French prices have remained broadly similar.
In a report last year, the OECD (Organisation for Economic Co-operation and Development) said Spanish property prices were still overvalued by more than 10% – although it added that French prices were around 20% too high while British houses are 31% overvalued.
Similar(53)
It has also priced the product very high, out of fear, perhaps, that diners cannot respect any cuisine unless it carries a French price tag.
Finally, the French pricing system has induced companies to develop aggressive promotional efforts and marketing campaigns to curb sales and compensate for low prices (53).
In 2005, the French pricing body Comité économique des produits de santé (CEPS) asked the manufacturer of the injectable antipsychotic risperidone (RisperdalConsta LP) to perform a one-year study that should evidence reduction in a rate of hospitalizations for patients treated with this drug as compared to other antipsychotics (to be designed under supervision of Ministry of Health) [ 11, 12].
Indeed, he said, up until three years ago French gasoline prices were higher than British prices.
Fewer than 50 selections, mostly Italian, American and French, at prices that begin at $19. PRICE RANGE -- Lunch, sandwiches $8 to $10; specials are about half the price of dinner entrees.
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