Price Discrimination in Input Markets: Quantity Discounts and Private Information

Price Discrimination in Retail Markets

The hypothesis that price discrimination exploiting the consumer's willingness to pay for quality can occur in multi-firm industries is confirmed using microdata on retail gasoline prices. A test based on the price differentials at stations providing only one service quality (full or self service) and stations providing both qualities is developed and implemented with controls for variations in...

Advance-purchase discounts as a price discrimination device

In an intertemporal setting in which individual uncertainty is resolved over time, advancepurchase discounts can serve to price discriminate between consumers with different expected valuations for the product. Consumers with a high expected valuation purchase the product before learning their actual valuation at the offered advance-purchase discount; consumers with a low expected valuation wil...

Unravelling Quantity Discounts

Price Discrimination in Markets for Experts’ Services

This article studies the consequences of price discrimination in a market for experts’ services. In the case of experts markets, where the expert observes the intervention that a consumer needs to fix his problem and also provides a treatment, price discrimination proceeds along the dimension of quality of advice offered. High quality advice and appropriate treatment is provided to the most pro...

Intertemporal Price Discrimination in Storable Goods Markets

We study intertemporal price discrimination when consumers can store for future consumption needs. To make the problem tractable we o¤er a simple model of demand dynamics, which we estimate using market level data. Optimal pricing involves temporary price reductions that enable sellers to discriminate between price sensitive consumers, who anticipate future needs, and less price-sensitive consu...