Article ID Journal Published Year Pages File Type
5078658 International Journal of Industrial Organization 2008 15 Pages PDF
Abstract
Estimates from a structural model of consumer behavior and firm conduct are used to decompose the extent to which quantity discounts for paper towels are consistent with second degree price discrimination as opposed to cost differences across sizes. Counterfactual exercises assuming that firms offer only one package size or charge uniform prices across sizes indicate that competition in the multi-roll package size segment results in increased consumer surplus and lower prices for all consumers.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Authors
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