This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window

American Economic Review: Vol. 103 No. 1 (February 2013)

Expand

Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter

Explore:

AER - All Issues

AER Forthcoming Articles

Price Discrimination and Bargaining: Empirical Evidence from Medical Devices

Article Citation

Grennan, Matthew. 2013. "Price Discrimination and Bargaining: Empirical Evidence from Medical Devices." American Economic Review, 103(1): 145-77.

DOI: 10.1257/aer.103.1.145

Abstract

Many important issues in business-to-business markets involve price discrimination and negotiated prices, situations where theoretical predictions are ambiguous. This paper uses new panel data on buyer-supplier transfers and a structural model to empirically analyze bargaining and price discrimination in a medical device market. While many phenomena that restrict different prices to different buyers are suggested as ways to decrease hospital costs (e.g., mergers, group purchasing organizations, and transparency), I find that: (i) more uniform pricing works against hospitals by softening competition; and (ii) results depend ultimately on a previously unexplored bargaining effect. (JEL C78, L13, L14, L64)

Article Full-Text Access

Full-text Article

Additional Materials

Download Data Set (100.99 KB) | Online Appendix (355.12 KB)

Authors

Grennan, Matthew (U Toronto)

JEL Classifications

C78: Bargaining Theory; Matching Theory
L13: Oligopoly and Other Imperfect Markets
L14: Transactional Relationships; Contracts and Reputation; Networks
L64: Other Machinery; Business Equipment; Armaments


American Economic Review


Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)

Explore:

AER - All Issues

AER - Forthcoming Articles

Virtual Field Journals


AEA Member Login:


AEAweb | AEA Journals | Contact Us