Advanced Search
MyIDEAS: Login to save this article or follow this journal

Identifying Price Discrimination When Product Menus Are Endogenous

Contents:

Author Info

  • Andrew Cohen

    ()
    (Federal Reserve Board, Washington, DC 20551, USA)

Registered author(s):

    Abstract

    A well-known approach to identifying second-degree price discrimination is based on examining correlations between product menus and prices. When product menus are endogenous, however, tests for price discrimination may be biased by the fact that unobservables affecting costs or demand may jointly determine product menus and prices, leading one to falsely infer price discrimination. Using observed product characteristics or fixed effects to control for these unobservables confounds inference on the nature of price discrimination by potentially ‘‘overcorrecting’’ the original bias. I propose a difference-indifferences approach that is robust to this critique. An application to the pricing of different package sizes of paper towels is presented.

    Download Info

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below under "Related research" whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Bibliographic Info

    Article provided by Southern Economic Association in its journal Southern Economic Journal.

    Volume (Year): 77 (2011)
    Issue (Month): 3 (January)
    Pages: 674-691

    as in new window
    Handle: RePEc:sej:ancoec:v:77:3:y:2011:p:674-691

    Contact details of provider:
    Web page: http://www.southerneconomic.org/
    More information through EDIRC

    Related research

    Keywords:

    Find related papers by JEL classification:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:sej:ancoec:v:77:3:y:2011:p:674-691. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Laura Razzolini).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.