Price discrimination and market concentration: evidence from the laundry detergent market Articles uri icon

authors

  • CACICEDO DOS SANTOS, THIAGO

publication date

  • December 2021

start page

  • 594

end page

  • 609

issue

  • 6

volume

  • 89

International Standard Serial Number (ISSN)

  • 1463-6786

Electronic International Standard Serial Number (EISSN)

  • 1467-9957

abstract

  • I analyse the relationship between price discrimination, with respect to the package size of the product, and market concentration in the liquid laundry detergent market. Specifically, I study how quantity discounts change with market concentration. I estimate a fixed effects model and find that this relationship is non-monotonic and I provide evidence that it is U-shaped. These results suggest that firms offer more quantity discounts in less and more concentrated markets, while they offer less quantity discounts in moderately concentrated markets.

subjects

  • Economics

keywords

  • market concentration; non- linear pricing; price discrimination; quantity discount