EconPapers    
Economics at your fingertips  
 

Direct and indirect price discrimination in the automotive industries of the European Union

Vlad Radoias (radoias@shsu.edu)

Empirical Economics, 2016, vol. 50, issue 3, No 12, 975-990

Abstract: Abstract Using a panel dataset comprising of 51 models across 21 European Union member states, I estimate the effects of country-specific factors that make price discrimination profitable. Taking advantage of cross-country heterogeneities, I find that a domestic brand bias, per capita income, and income inequalities lead to significantly different prices across borders. The role of income inequalities is supported by a theoretical model of indirect price discrimination at the national level. We therefore conclude that not only direct international price discrimination, but also indirect national price discrimination is responsible for the observed price differentials across international borders, which are not likely to fully converge as long as the exclusive dealership system is in place, and significant demand-side differences still remain.

Keywords: Price dispersion; Price discrimination; Price convergence (search for similar items in EconPapers)
JEL-codes: L11 L41 L62 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s00181-015-0950-y Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:empeco:v:50:y:2016:i:3:d:10.1007_s00181-015-0950-y

Ordering information: This journal article can be ordered from
http://www.springer. ... rics/journal/181/PS2

DOI: 10.1007/s00181-015-0950-y

Access Statistics for this article

Empirical Economics is currently edited by Robert M. Kunst, Arthur H.O. van Soest, Bertrand Candelon, Subal C. Kumbhakar and Joakim Westerlund

More articles in Empirical Economics from Springer
Bibliographic data for series maintained by Sonal Shukla (sonal.shukla@springer.com) and Springer Nature Abstracting and Indexing (indexing@springernature.com).

 
Page updated 2024-11-22
Handle: RePEc:spr:empeco:v:50:y:2016:i:3:d:10.1007_s00181-015-0950-y