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Intertemporal Price Discrimination and Competition

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  • Ralph-C Bayer

    ()
    (School of Economics, University of Adelaide)

Abstract

In this study we investigate the impact of competition on markets for non-durable goods where intertemporal price discrimination is possible. We develop a simple model of different potential scenarios for intertemporal price discrimination and implement it in a laboratory experiment. We compare the outcomes in monopolies and duopolies. Surprisingly, we find that competition does not necessarily prevent intertemporal price discrimination, as our model predicts. However, competition generally reduces sales prices, but by far less than theory predicts. As expected, competition increases efficiency.

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Bibliographic Info

Paper provided by University of Adelaide, School of Economics in its series School of Economics Working Papers with number 2006-06.

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Date of creation: 2006
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Handle: RePEc:adl:wpaper:2006-06

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Postal: Adelaide SA 5005
Phone: (618) 8303 5540
Web page: http://www.economics.adelaide.edu.au/
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Keywords: price discrimination; oligopoly; market experiments;

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Cited by:
  1. Ralph-C Bayer & Changxia Ke, 2011. "Discounts and Consumer Search Behavior: The Role of Framing," Working Papers discounts_and_consumer_se, Max Planck Institute for Tax Law and Public Finance.

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