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The price discrimination effect of a large merger of parking garages


  • De Nijs, Romain


This note investigates the effects of a large horizontal merger on the shape of the 1-to-12 h price menus offered by parking garages in Paris. The merger caused low-end prices to increase proportionally more than high-end prices. This results in larger discounts on longer hours and hence in more price discrimination between short-term and long-term motorists.

Suggested Citation

  • De Nijs, Romain, 2012. "The price discrimination effect of a large merger of parking garages," Economics Letters, Elsevier, vol. 117(3), pages 928-931.
  • Handle: RePEc:eee:ecolet:v:117:y:2012:i:3:p:928-931 DOI: 10.1016/j.econlet.2012.07.018

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    References listed on IDEAS

    1. Haizhen Lin & Yijia Wang, 2012. "Competition and Price Discrimination in the Parking Garage Industry," Working Papers 2012-07, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
    2. Orley C. Ashenfelter & Daniel S. Hosken & Matthew C. Weinberg, 2013. "The Price Effects of a Large Merger of Manufacturers: A Case Study of Maytag-Whirlpool," American Economic Journal: Economic Policy, American Economic Association, vol. 5(1), pages 239-261, February.
    3. Meghan Busse & Marc Rysman, 2005. "Competition and Price Discrimination in Yellow Pages Advertising," RAND Journal of Economics, The RAND Corporation, vol. 36(2), pages 378-390, Summer.
    4. Orley Ashenfelter & Daniel Hosken, 2010. "The Effect of Mergers on Consumer Prices: Evidence from Five Mergers on the Enforcement Margin," Journal of Law and Economics, University of Chicago Press, vol. 53(3), pages 417-466.
    5. Alan T. Sorensen, 2000. "Equilibrium Price Dispersion in Retail Markets for Prescription Drugs," Journal of Political Economy, University of Chicago Press, vol. 108(4), pages 833-862, August.
    6. Matthew C. Weinberg, 2011. "More Evidence on the Performance of Merger Simulations," American Economic Review, American Economic Association, vol. 101(3), pages 51-55, May.
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    More about this item


    Horizontal merger; Difference-in-differences; Price discrimination;

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L4 - Industrial Organization - - Antitrust Issues and Policies
    • L9 - Industrial Organization - - Industry Studies: Transportation and Utilities


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