Students Seminar

Thiago Cacicedo

Universidad de Alicante

14-Jan-2020

Seminar 3 – 14:30

Abstract

Using a fixed effects model, I analyse the relationship between price discrim- ination, with respect to the size of the product, and market concentration in the liquid laundry detergent market. The results suggest that firms incur on price dis- crimination when the market becomes more concentrated, with large size prod- ucts becoming more expensive vis a vis small size products. This increase in rela- tive prices generates the phenomenon known as quantity surcharges, which occur when a small size item is, per unit, cheaper than its large counterpart. Addition- ally, I provide evidence the this relationship appears to be non-monotonic.

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