EconPapers    
Economics at your fingertips  
 

Revisiting the Relationship between Competition and Price Discrimination

Ambarish Chandra and Mara Lederman

American Economic Journal: Microeconomics, 2018, vol. 10, issue 2, 190-224

Abstract: We revisit the relationship between competition and price discrimination. Theoretically, we show that if consumers differ in terms of both their underlying willingness-to-pay and their brand loyalty, competition may increase price differences between some consumers while decreasing them between others. Empirically, we find that competition has little impact at the top or the bottom of the price distribution but a significant impact in the middle, thus increasing some price differentials but decreasing others. Our findings highlight the importance of understanding the relevant sources of consumer heterogeneity and can reconcile earlier conflicting findings.

JEL-codes: D12 D22 D43 L13 L93 M31 (search for similar items in EconPapers)
Date: 2018
Note: DOI: 10.1257/mic.20160252
References: Add references at CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed

Downloads: (external link)
https://www.aeaweb.org/doi/10.1257/mic.20160252 (application/pdf)
https://www.aeaweb.org/articles/attachments?retrie ... _dNcXd_uQw7o2QmIV4sW (application/zip)
https://www.aeaweb.org/articles/attachments?retrie ... 4JmdIGoAVhrF_VI3Ybsk (application/pdf)
https://www.aeaweb.org/articles/attachments?retrie ... 7kDFA99kLsUrC6Lwpawe (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.

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:aea:aejmic:v:10:y:2018:i:2:p:190-224

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

Access Statistics for this article

American Economic Journal: Microeconomics is currently edited by Johannes Hörner

More articles in American Economic Journal: Microeconomics from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().

 
Page updated 2022-04-27
Handle: RePEc:aea:aejmic:v:10:y:2018:i:2:p:190-224