Price Discrimination in Oligopoly: Evidence from Swedish Newspapers

Marcus Asplund, Rickard Eriksson and Niklas Strand
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Niklas Strand: Dept. of Economics, Stockholm School of Economics, Postal: Stockholm School of Economics, P.O. Box 6501, S-113 83 Stockholm, Sweden

No 468, Working Paper Series in Economics and Finance from Stockholm School of Economics

Abstract: This paper provides an empirical examination of third-degree price discrimination in the Swedish newspaper industry. The results show that price discrimination is more prevalent in competitive markets and among newspapers with low market shares. This supports predictions from recent theoretical work, including Chen (1997) and Fudenberg and Tirole (2000), which suggest that firms attempt to poach consumers from rivals by offering targeted discounts. In addition, we find weak evidence of newspapers in markets with large inflows of new consumers and those covering wide geographical areas offering more discounts.

Keywords: Price discrimination; oligopoly; newspapers (search for similar items in EconPapers)
JEL-codes: D43 L13 L82 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eec and nep-mic
Date: 2001-10-25, Revised 2007-01-01
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Forthcoming in Journal of Industrial Economics.

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Working Paper: Price Discrimination in Oligopoly: Evidence from Swedish Newspapers (2002)
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Persistent link: http://EconPapers.repec.org/RePEc:hhs:hastef:0468

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