Competition and Price Discrimination in the Parking Garage Industry

Abstract:     
This paper provides an empirical examination of the relationship between competition and price discrimination 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 the competition intensifies. We explain this result in terms of differences between the searching behaviors of short- and long-term customers.

Number of Pages in PDF File: 32

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