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The price discrimination effect of a large merger of parking garages

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  • De Nijs, Romain

Abstract

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

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    1. Philippe Choné & Laurent Linnemer, 2012. "A Treatment Effect Method for Merger Analysis with an Application to Parking Prices in P aris," Journal of Industrial Economics, Wiley Blackwell, vol. 60(4), pages 631-656, December.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. Matthew Weinberg, 2008. "The Price Effects Of Horizontal Mergers," Journal of Competition Law and Economics, Oxford University Press, vol. 4(2), pages 433-447.
    7. 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.
    8. 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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    Cited by:

    1. Inci, Eren & Lindsey, Robin, 2015. "Garage and curbside parking competition with search congestion," Regional Science and Urban Economics, Elsevier, vol. 54(C), pages 49-59.
    2. Fabusuyi, Tayo & Hampshire, Robert C., 2018. "Rethinking performance based parking pricing: A case study of SFpark," Transportation Research Part A: Policy and Practice, Elsevier, vol. 115(C), pages 90-101.
    3. Inci, Eren, 2015. "A review of the economics of parking," Economics of Transportation, Elsevier, vol. 4(1), pages 50-63.

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    More about this item

    Keywords

    Horizontal merger; Difference-in-differences; Price discrimination;
    All these keywords.

    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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