Intertemporal Price Discrimination and Competition

Ralph-C Bayer ()

No 2006-06, School of Economics and Public Policy Working Papers from University of Adelaide, School of Economics and Public Policy

Abstract: In this study we investigate the impact of competition on markets for non-durable goods where intertemporal price discrimination is possible. We develop a simple model of different potential scenarios for intertemporal price discrimination and implement it in a laboratory experiment. We compare the outcomes in monopolies and duopolies. Surprisingly, we find that competition does not necessarily prevent intertemporal price discrimination, as our model predicts. However, competition generally reduces sales prices, but by far less than theory predicts. As expected, competition increases efficiency.

Keywords: price discrimination; oligopoly; market experiments (search for similar items in EconPapers)
JEL-codes: C91 L12 L13 (search for similar items in EconPapers)
Date: 2006
New Economics Papers: this item is included in nep-com, nep-exp, nep-ind, nep-mic and nep-mkt
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Citations: View citations in EconPapers (1)

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Journal Article: Intertemporal price discrimination and competition (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:adl:wpaper:2006-06

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