Price Discrimination in Oligopoly: evidence from regional newspapers
2008 (English)In: Journal of Industrial Economics, ISSN 0022-1821, E-ISSN 1467-6451, Vol. 56, no 2, 333-346 p.Article in journal (Refereed) Published
Recent theoretical work has shown that the incentive to target rival firms' customers with low prices can increase price discrimination, and that the strength of the incentive depends on a firm's market position. Using data on Swedish newspaper subscriptions, we find strong support for these predictions. Newspapers with a local competitor sell a larger part of their circulation at a discount than monopoly newspapers. Moreover, in competitive markets, the use of discounts is inversely related to the newspaper's market share. We find no evidence that price discrimination based on observable and exogenous characteristics is influenced by the market structure.
Place, publisher, year, edition, pages
2008. Vol. 56, no 2, 333-346 p.
states airline industry, competition, market, switch
Economics and Business
IdentifiersURN: urn:nbn:se:kth:diva-10736DOI: 10.1111/j.1467-6451.2008.00343.xISI: 000257707800005ScopusID: 2-s2.0-65249141784OAI: oai:DiVA.org:kth-10736DiVA: diva2:227701
QC 201110042009-07-162009-07-162011-10-10Bibliographically approved