New Entry and Hedonic Price Discounts: The Case of the Irish Car Market

R S Thompson

Oxford Bulletin of Economics and Statistics, 1987, vol. 49, issue 4, 373-84

Abstract: This paper examines the quality-adjusted entry discounts being offered on car models whose manufacturers are n ew to the Irish market. It is suggested that recent changes have made the Irish market particularly accessible. This has been reflected in large numbers of new entrants. The research uses hedonic price regre ssions to evaluate the characteristics of all models on offer to Iris h buyers and hence to isolate the discounts, if any, in the prices of those intro-duced by newcomers. Copyright 1987 by Blackwell Publishing Ltd

Date: 1987
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