Thursday, June 14, 2012
Posted by D. Daniel Sokol
Haizhen Lin, Indiana University and Yijia Wang discuss Competition and Price Discrimination in the Parking Garage Industry.
Abstract: This paper provides an empirical examination of the relationship between competition and price discrimination in the parking garage industry. We find that the degree of price schedule curvature decreases with competition, implying a greater proportionate drop in low-end prices than in high-end prices when the competition intensifies. We explain this result in terms of differences between the searching behaviors of short- and long-term customers.