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Dyskryminacja cenowa a transakcje wiązane

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  • Baranowska-Prokop, Ewa
  • Prokop, Jacek

Abstract

The aim of the paper is to examine the conditions in which companies use countertrade to hide their price discrimination practices and maintain a strong negotiating position with regard to their commercial partners. The analysis was made on the basis of two models. First, the authors present an innovative model for third-degree discrimination in which countertrade is used to conceal price differences; then they build a model in which countertrade promotes second-degree price discrimination. In the third-degree price discrimination model, the authors prove that the effective use of products as payment in countertrade deals, coupled with the relatively high probability that price discrimination will be revealed, encourages companies to diversify prices in different market segments with the use of tie-in transactions. On the other hand, in the second-degree price discrimination model, if the marginal costs of production are not too high in relation to the value of the mutual services, the monopoly will offer its customers the possibility of buying goods in an ordinary market transaction or in a tie-in. At a point of balance, both forms of trade will occur, but prices in countertrade will be lower than market prices. The authors show that, under specific conditions, countertrade is a useful tool for maximizing business profit by enabling price discrimination.

Suggested Citation

  • Baranowska-Prokop, Ewa & Prokop, Jacek, 2007. "Dyskryminacja cenowa a transakcje wiązane," Gospodarka Narodowa-The Polish Journal of Economics, Szkoła Główna Handlowa w Warszawie / SGH Warsaw School of Economics, vol. 2007(3), March.
  • Handle: RePEc:ags:polgne:356489
    DOI: 10.22004/ag.econ.356489
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    References listed on IDEAS

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    1. Guriev, Sergei & Kvassov, Dmitri, 2004. "Barter for price discrimination," International Journal of Industrial Organization, Elsevier, vol. 22(3), pages 329-350, March.
    2. Caves, Richard E & Marin, Dalia, 1992. "Countertrade Transactions: Theory and Evidence," Economic Journal, Royal Economic Society, vol. 102(414), pages 1171-1183, September.
    3. John Riley & Richard Zeckhauser, 1983. "Optimal Selling Strategies: When to Haggle, When to Hold Firm," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 98(2), pages 267-289.
    4. Hennart, Jean-Francois & Anderson, Erin, 1993. "Countertrade and the Minimization of Transaction Costs: An Empirical Examination," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 9(2), pages 290-313, October.
    5. Rolf Mirus & Bernard Yeung, 1986. "Economic Incentives for Countertrade," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 17(3), pages 27-39, September.
    6. Dalia Marin & Monika Schnitzer, 2002. "Contracts in Trade and Transition: The Resurgence of Barter," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262133997, December.
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