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The Economic Research Institute, Stockholm School of Economics SSE/EFI Working Paper Series in Economics and Finance

No 468:
Price Discrimination in Oligopoly: Evidence from Swedish Newspapers

Marcus Asplund (), Rickard Eriksson and Niklas Strand

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), which suggest that firms attempt to poach consumers from rivals by offering targeted discounts. In addition, we find weak evidence of newspapers in markets with large inflows of new consumers and those covering wide geographical areas offering more discounts.

Keywords: Price discrimination; oligopoly; newspapers; (follow links to similar papers)

JEL-Codes: D43; L13; L82; (follow links to similar papers)

20 pages, October 25, 2001, Revised January 1, 2007

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This paper is forthcoming as:
Asplund, Marcus, Rickard Eriksson and Niklas Strand, 'Price Discrimination in Oligopoly: Evidence from Swedish Newspapers', Journal of Industrial Economics.



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