Replication data for: Hassle Costs and Price Discrimination: An Empirical Welfare Analysis

Name: Replication data for: Hassle Costs and Price Discrimination: An Empirical Welfare Analysis
Published: 2015-07-01
License: This work is licensed under an Other license created by the data depositor. Please refer to the LICENSE file, which should be located alongside the project data and documentation.
Keywords: Industrial Organization

Principal Investigator(s): View help for Principal Investigator(s) Guillermo Marshall

Version: View help for Version V1

Name	File Type	Size	Last Modified
Readme.pdf	application/pdf	56.1 KB	10/12/2019 08:22:AM
dwelfarenew.m	text/plain	3.9 KB	10/12/2019 08:22:AM
lik.m	text/plain	3.6 KB	10/12/2019 08:22:AM
mainfulluni_all.m	text/plain	3.6 KB	10/12/2019 08:22:AM
profit.m	text/plain	278 bytes	10/12/2019 08:22:AM
sharenewF.m	text/plain	3 KB	10/12/2019 08:22:AM
welfare.m	text/plain	5 KB	10/12/2019 08:22:AM

Project Description

Summary: 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: Industrial Organization

JEL Classification:
      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

Universe: 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): observational data

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V1 [2019-10-12]

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