Competition and Price Discrimination in Yellow Pages Advertising

Meghan R. Busse (meghan@haas.berkeley.edu) and Marc Rysman
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Meghan R. Busse: Haas School of Business

Yale School of Management Working Papers from Yale School of Management

Abstract: This paper examines the effect of competition on second degree price discrimination in display advertising in Yellow Page directories. Recent theoretical work makes conflicting predictions about the effect of competition on curvature. Our main empirical finding is that competition increases the curvature of the price schedule, meaning that purchasers of the largest ads see their prices fall the most in response to competition. We also present evidence of menu costs in adjusting pricing schedules and address this issue in estimation. The magnitudes that we find could be relevant for welfare calculations in the face of price discrimination.

JEL-codes: L11 L13 (search for similar items in EconPapers)
Date: 2001-06-25
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Competition and Price Discrimination in Yellow Pages Advertising (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:ysm:somwrk:ysm207

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