Replication data for: Hassle Costs and Price Discrimination: An Empirical Welfare Analysis
Principal Investigator(s): View help for Principal Investigator(s) Guillermo Marshall
Version: View help for Version V1
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Project Citation:
Marshall, Guillermo. Replication data for: Hassle Costs and Price Discrimination: An Empirical Welfare Analysis. Nashville, TN: American Economic Association [publisher], 2015. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E113582V1
Project Description
Summary:
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This paper studies a market where soda is sold in both refillable and nonrefillable bottles. Purchasing refillables is inconvenient but cheaper. Using a discrete choice model, I find that price-sensitive customers put less weight on the inconveniences of purchasing refillables. This implies that a retailer can target lower prices to price-sensitive customers using the refillable segment. I evaluate the overall welfare consequences of this market segmentation and find that both customer welfare and profits would decrease (by 12.61 and 4.21 percent, respectively) if the refillables were removed, as there would be an important market-shrinkage effect. (JEL D22, L13, L25, L81)
Scope of Project
Subject Terms:
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Industrial Organization
JEL Classification:
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D22 Firm Behavior: Empirical Analysis
L13 Oligopoly and Other Imperfect Markets
L25 Firm Performance: Size, Diversification, and Scope
L81 Retail and Wholesale Trade; e-Commerce
D22 Firm Behavior: Empirical Analysis
L13 Oligopoly and Other Imperfect Markets
L25 Firm Performance: Size, Diversification, and Scope
L81 Retail and Wholesale Trade; e-Commerce
Time Period(s):
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1/1/2010 – 12/31/2011
Universe:
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The prices of carbonated beverages in a developing country between the years 2010 and 2011, measured at the product--store--week level. Household-level purchases of carbonated soda in a developing country between the years 2010 and 2011, measured at the household--store--day level.
Data Type(s):
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observational data
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