SSE/EFI Working Paper Series in Economics and Finance
Price Discrimination in Oligopoly: Evidence from Swedish Newspapers
(), 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
- 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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