IDEAS home Printed from https://ideas.repec.org/p/emp/wpaper/de8-138-i.html
   My bibliography  Save this paper

Differentiation and the relationship between product market competition and price discrimination

Author

Listed:
  • MANUEL BECERRA

    () (Instituto de Empresa)

  • Juan Santaló

    () (Instituto de Empresa)

Abstract

We investigate how the effect of competition on price discrimination varies depending on the level of quality provided by companies in the hospitality industry. Our findings reconcile conflicting results of previous literature on this topic. Namely, we provide strong empirical evidence that competition affects differently the price of single and double rooms of hotels with greater quality versus those with lower quality. In the presence (absence) of differentiation, competition increases (decreases) price discrimination. Our findings are robust to the use of econometric techniques that alleviate endogeneity concerns.

Suggested Citation

  • MANUEL BECERRA & Juan Santaló, 2011. "Differentiation and the relationship between product market competition and price discrimination," Working Papers Economia de8-138-i, Instituto de Empresa, Area of Economic Environment.
  • Handle: RePEc:emp:wpaper:de8-138-i
    as

    Download full text from publisher

    File URL: http://latienda.ie.edu/working_papers_economia/DE8-138-I.pdf
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gil, Ricard & Riera-Crichton, Daniel & Ruzzier, Christian, 2016. "As Seen on TV: Price Discrimination and Competition in Television Advertising," MPRA Paper 75993, University Library of Munich, Germany.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:emp:wpaper:de8-138-i. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Amada Marcos). General contact details of provider: http://edirc.repec.org/data/aeeiees.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.