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| Author: | Asplund, M. Eriksson, R. Strand, N. |
| Title: | Price discrimination in oligopoly: evidence from regional newspapers |
| Journal: | Journal of Industrial Economics
2008 : JUN, VOL. 56:2, p. 333-346 |
| Index terms: | markets competition oligopoly price discrimination Scandinavia Nordic countries Sweden publishing industry |
| Freeterms: | newspapers discounts |
| Language: | eng |
| Abstract: | Based on theoretical work, the incentive to target competitor firms' customers with low prices can increase price discrimination, with the strength of the incentive depending on a firm's market position. Using data on Swedish newspaper subscriptions, there is found strong support for these predictions. Newspapers with a local competitor sell a larger part of their circulation at a discount than monopoly newspapers. Furthermore, in competitive markets, the use of discounts is inversely related to the newspaper's market share. There is found no evidence that the market structure would influence price discrimination based on observable and exogenous characteristics. |
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