Understanding price dispersion new structural models of price discrimination an...
Understanding price dispersion new structural models of price discrimination and applications
Structural models of demand and supply in differentiated product markets are widely used for policy evaluation and in antitrust. They typically consider firms set uniform prices and fail to explain price dispersion within products...
ver más
¿Tienes un proyecto y buscas un partner? Gracias a nuestro motor inteligente podemos recomendarte los mejores socios y ponerte en contacto con ellos. Te lo explicamos en este video
Proyectos interesantes
ECO2011-24927
LOCALIZACION COMPETITIVA CON NUEVAS REGLAS DE ELECCION DE LO...
36K€
Cerrado
RETAIL
Retailer Market Power and Competition Policy
222K€
Cerrado
FLEXREV
Integrating Flexible Discrete Choice and Revenue Management...
75K€
Cerrado
ECO2012-38860-C02-01
COMPETENCIA, COOPERACION Y NEGOCIACION EN LA FORMACION DE PR...
16K€
Cerrado
CONSBEHAVIOR
Consumer Behavior and Market Equilibrium in Industrial Organ...
146K€
Cerrado
MSAEO
Market Selection and Aggregate Economic Outcomes
276K€
Cerrado
Información proyecto PRIDISP
Duración del proyecto: 82 meses
Fecha Inicio: 2019-10-25
Fecha Fin: 2026-08-31
Fecha límite de participación
Sin fecha límite de participación.
Descripción del proyecto
Structural models of demand and supply in differentiated product markets are widely used for policy evaluation and in antitrust. They typically consider firms set uniform prices and fail to explain price dispersion within products. Yet, it is common that the same good is purchased at different prices and this has major consequences for consumers that standard models cannot analyze. This proposal extends standard models to incorporate price dispersion. These new structural models are used to shed lights on the sources of price dispersion, their importance and evaluate the distributional impacts and profitability of price dispersion on important markets (automobile, grocery items and online markets).
We model and analyze specific sources of price dispersion. First, we consider price dispersion within product lines and the pricing of quality with a model of second degree price discrimination. Second, we develop a model of third degree price discrimination with limited arbitrage opportunity. When price discrimination is not explicit, consumers are not locked in and some individuals are able to arbitrage and pay the lowest price. The third project considers individualized pricing and purchase history and develops a structural model in which firms learn about consumers’ preferences by observing their previous purchase patterns and leverage this information by setting individualized prices. Finally, we consider a framework with spatial price dispersion to analyze price dispersion for grocery items across locations. As a transversal project, we provide a reliable method to test alternative models of market equilibrium and apply them to confront our new models to the standard ones.