Competitive Price Discrimination in a Spatially Differentiated Intermediate Goods Market ∗
Competitive Price Discrimination in a Spatially Differentiated Intermediate Goods Market ∗
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空间差异化中间产品市场中的竞争性价格歧视*
DOI:
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发表时间:
2015
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通讯作者:
Yuya Takahashi
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作者:
W. Beckert;Howard W. Smith;Yuya Takahashi
Intermediate product markets are distinct in several ways, including the large size of the transactions, and the ability to price discriminate using buyer-specific prices. We study a competitive intermediate goods market in which there are buyer-specific prices. Using a rich dataset of transactions from the UK brick industry– in which transportation costs play an important role– we estimate a model of price setting in which the price is set specifically for each transaction. We estimate two specifications, one in which the sellers make take-it-orleave-if offers to buyers, and one in which prices are negotiated between the buyer and seller. We analyse the effect of bargaining power, location, and transaction size on prices. Preliminary and Incomplete. Comments welcome. ∗We thank seminar participants at Helsinki Center of Economic Research and Penn State for their helpful comments and suggestions. We are grateful to the John Fell Fund at Oxford University for financial assistance. *Birkbeck College, University of London †Department of Economics, Oxford University ‡Johns Hopkins University. We are grateful to a number of people for research assistance: David Elliott, Jack Rowse, Stephen Tozer, and Ben Vanderspar.