Replication data for: Revisiting the Relationship between Competition and Price Discrimination

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Project Citation:

Chandra, Ambarish, and Lederman, Mara. Replication data for: Revisiting the Relationship between Competition and Price Discrimination. Nashville, TN: American Economic Association [publisher], 2018. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E114359V1

Project Description

Summary: We revisit the relationship between competition and price discrimination. Theoretically, we show that if consumers differ in terms of both their underlying willingness-to-pay and their brand loyalty, competition may increase price differences between some consumers while decreasing them between others. Empirically, we find that competition has little impact at the top or the bottom of the price distribution but a significant impact in the middle, thus increasing some price differentials but decreasing others. Our findings highlight the importance of understanding the relevant sources of consumer heterogeneity and can reconcile earlier conflicting findings.

Scope of Project

JEL Classification:
      D12 Consumer Economics: Empirical Analysis
      D22 Firm Behavior: Empirical Analysis
      D43 Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
      L13 Oligopoly and Other Imperfect Markets
      L93 Air Transportation
      M31 Marketing

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Published Versions

V1 [2019-10-12]

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