Abstract

http://ssrn.com/abstract=2033463
 


 



Competition and Price Discrimination: Evidence from the Parking Garage Industry


Haizhen Lin


Indiana University - Kelley School of Business - Department of Business Economics & Public Policy

Yijia Wang


NERA Economic Consulting

February 1, 2012


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. Our findings suggest that competition constrains a firm’s capacity to exercise price discrimination, confirming the classic textbook theory. We also offer possible explanations for our findings, including a search cost explanation, for which we find some support in the data.

Number of Pages in PDF File: 29

Keywords: competition, price curvature, price discrimination, consumer search, parking garage industry

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Date posted: April 6, 2012 ; Last revised: September 19, 2014

Suggested Citation

Lin, Haizhen and Wang, Yijia, Competition and Price Discrimination: Evidence from the Parking Garage Industry (February 1, 2012). Available at SSRN: http://ssrn.com/abstract=2033463 or http://dx.doi.org/10.2139/ssrn.2033463

Contact Information

Haizhen Lin (Contact Author)
Indiana University - Kelley School of Business - Department of Business Economics & Public Policy ( email )
Bloomington, IN 47405
United States

Yijia Wang
NERA Economic Consulting ( email )
50 Main Street, 14th Floor
White Plains, NY 10606
United States
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