Passenger car market and regional price discriminations for new cars: Case study and empirical analysis for Poland 2004–2021

Bielig Andreas ()
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Bielig Andreas: Collegium of World Economy, SGH Warsaw School of Economics, Warsaw, Poland

International Journal of Management and Economics, 2024, vol. 60, issue 4, 285-297

Abstract: Poland disposes on a large stock of mostly aged private passenger cars. In contrast younger cars still play minor role in individual mobility. The contribution analyzes reasons of lagging modernization by focusing on new cars prices with respect to regional price discrimination. It finds in 2004-2021 substantially increasing new cars prices and regional price discrimination between Poland and Germany. Price differentials were positive, with lower prices in Poland, and increased during time. Producers discriminated by prices increasingly but also limited arbitrage transactions by controlling excess differentials. Optimal regional price discrimination could support car markets developments in Poland by stock age compositions shifts towards younger cars. However, applied discrimination proves in observed market environments not sufficient to achieve a great car market transition in near future.

Keywords: price discrimination; passenger cars; market development; Poland (search for similar items in EconPapers)
JEL-codes: D42 D47 L12 L62 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:ijomae:v:60:y:2024:i:4:p:285-297:n:1002

DOI: 10.2478/ijme-2024-0019

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