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Brand Names and Price Discrimination

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  • Wolinsky, Asher

Abstract

This paper explains the fact that firms market both labeled and unlabeled products as a practice of price discrimination that emerges as a non-cooperative equilibrium outcome. The authors consider a market for a differentiated product where the possibility to price discriminate by the selective use of labels is due to the fact that buyers differ in the intensity of their preferences and that, before they buy, they are unable to distinguish among the different brands without the aid of identifying labels. Copyright 1987 by Blackwell Publishing Ltd.

Suggested Citation

  • Wolinsky, Asher, 1987. "Brand Names and Price Discrimination," Journal of Industrial Economics, Wiley Blackwell, vol. 35(3), pages 255-268, March.
  • Handle: RePEc:bla:jindec:v:35:y:1987:i:3:p:255-68
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    Cited by:

    1. Joseph Calhoun & David Kamerschen, 2010. "The impact of governing structure on the pricing behavior and market structure of public institutions of higher education in the U.S," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 57(3), pages 317-333, September.
    2. Soberman, David A. & Parker, Philip M., 2004. "Private labels: psychological versioning of typical consumer products," International Journal of Industrial Organization, Elsevier, vol. 22(6), pages 849-861, June.
    3. Alexander E. Saak, 2011. "A Model of Labeling with Horizontal Differentiation and Cost Variability," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(4), pages 1131-1150.
    4. Wen-Chung Guo & Fu-Chuan Lai, 2014. "Spatial competition with quadratic transport costs and one online firm," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(1), pages 309-324, January.
    5. Balagtas, Joseph Valdes & Binkley, James K. & Volpe, Richard & Young, Jeffrey S., 2014. "Competition between Private Labels and National Brands: a Simple Econometric Test and Application to Dairy Markets," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170544, Agricultural and Applied Economics Association.
    6. Jayakrishnan, S. & Rekha, D. Chikhalkar & Ranjan Chaudhuri, 2016. "Measuring factors determining private label purchase," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 6(2), pages 42-58, February.

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