Competition and Price Discrimination in the Parking Garage Industry

Haizhen Lin () and Yijia Wang
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Yijia Wang: NERA Economic Consulting

No 2012-07, Working Papers from Indiana University, Kelley School of Business, Department of Business Economics and Public Policy

Abstract: We study the relationship between competition and price discrimination through an empirical examination of hourly price schedules in the parking garage industry. We find that the degree of price schedule curvature decreases with competition, implying a greater proportionate drop in low-end prices than in high-end prices when competition intensifies. We provide an explanation for our findings using differences in search behaviors between short- and long-term customers.

Keywords: competition; price curvature; price discrimination; consumer search; parking garage industry (search for similar items in EconPapers)
JEL-codes: L0 L11 L12 (search for similar items in EconPapers)
Date: 2012-10
New Economics Papers: this item is included in nep-com, nep-ind, nep-mkt, nep-tre and nep-ure
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Citations: View citations in EconPapers (2)

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