Price Discrimination and the Long Boom

Daniel Richards ()

No 419, Discussion Papers Series, Department of Economics, Tufts University from Department of Economics, Tufts University

Abstract: This paper considers the possibility that an important role of computerization and information technology in strengthening the long boom of the 1990’s may have been to lower price-cost margins principally by facilitating price discrimination and “versioning, or that this may be a convenient way to model this contribution. Such practices intensify pric e competition and force firms to exploit scale economies more fully. Simulations of a simple model suggest that these effects account for two percentage points of extra gdp or between one third and nearly all of conventional estimates of the extra production by the end of the 1990’s.

Date: 2004
New Economics Papers: this item is included in nep-ltv, nep-mic and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:tuf:tuftec:0419

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