Price discrimination and market concentration: Evidence from the laundry detergent market

Thiago Cacicedo*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

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.

Original languageEnglish
Pages (from-to)594-609
Number of pages16
JournalManchester School
Volume89
Issue number6
Early online date23 Aug 2021
DOIs
Publication statusPublished - Dec 2021

Keywords

  • market concentration
  • non-linear pricing
  • price discrimination
  • quantity discounts

ASJC Scopus subject areas

  • Economics and Econometrics

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