Barter for price discrimination? A theory and evidence from Russia

Sergei Guriev and Dmitry Kvassov ()
Additional contact information
Dmitry Kvassov: Pennsylvania State University
Authors registered in the RePEc Author Service: Dmitriy Kvasov

No w0007, Working Papers from New Economic School (NES)

Abstract: Unprecedented demonetization of Russia’s transition economy has been explained by tight monetary policy, tax evasion and poor …nancial intermediation. We show that market power may also be important. We build a model of imperfect competition in which …rms use barter for price discrimination. The model predicts a positive relationship between concentration of market power and share of barter in sales. The model has multiple equilibria which may explain persistence of barter in Russia but not in other economies. Using a unique dataset on barter transactions in Russia, we show that the …rm-level evidence is consistent with the model’s predictions.

Keywords: barter; price discrimination; Cournot oligopoly (search for similar items in EconPapers)
JEL-codes: D43 L13 P42 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2000-10
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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https://www.nes.ru/files/Preprints-resh/WP7.pdf (application/pdf)

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Working Paper: Barter for price discrimination? A theory and evidence from Russia (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:abo:neswpt:w0007

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