Price Discrimination in Oligopoly: Evidence from Swedish Newspapers
23 Pages Posted: 16 Apr 2002
Date Written: March 2002
Abstract
This Paper provides an empirical examination of third-degree price discrimination in the Swedish newspaper industry. The results show that price discrimination is more prevalent in competitive markets and among newspapers with low market shares. This supports predictions from recent theoretical work, including Chen (1997) and Fudenberg and Tirole (2000), that suggest that firms attempt to poach consumers from rivals by offering targeted discounts. In addition, we find weak evidence that newspapers in markets with large inflows of new consumers and those covering wide geographical areas offer more discounts.
Keywords: Price discrimination, oligopoly, newspapers
JEL Classification: D43, L13, L82
Suggested Citation: Suggested Citation
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