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Competition and Price Discrimination in the Parking Garage Industry

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  • Haizhen Lin

    (Department of Business Economics and Public Policy, Indiana University Kelley School of Business)

  • Yijia Wang

    (NERA Economic Consulting)

Abstract

We study the relationship between competition and price discrimination through an empirical examination of hourly price schedules in the parking garage industry. We find that the degree of price schedule curvature decreases with competition, implying a greater proportionate drop in low-end prices than in high-end prices when competition intensifies. We provide an explanation for our findings using differences in search behaviors between short- and long-term customers.

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File URL: http://www.bus.indiana.edu/riharbau/RePEc/iuk/wpaper/bepp2012-07-lin-wang.pdf
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Bibliographic Info

Paper provided by Indiana University, Kelley School of Business, Department of Business Economics and Public Policy in its series Working Papers with number 2012-07.

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Date of creation: Oct 2012
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Handle: RePEc:iuk:wpaper:2012-07

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Keywords: competition; price curvature; price discrimination; consumer search; parking garage industry;

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