Spatial differentiation and price discrimination in the cement industry: evidence from a structural model.
We estimate a structural model of the cement industry that incorporates spatial differentiation and price discrimination, focusing on the US Southwest over 1983-2003. We leverage the structure of the model to obtain consistent estimates of the underlying parameters using data on market outcomes that...
| Publicado en: | RAND Journal of Economics (Wiley-Blackwell) Vol. 45; no. 2; pp. 221 - 248 |
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| Autores principales: | , |
| Formato: | Artículo |
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Wiley-Blackwell
Summer2014
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=95892005&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 95892005 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 07416261 56RJ jtl: RAND Journal of Economics (Wiley-Blackwell) issn: 07416261 maglogo: Y pubinfo: dt: Summer2014 vid: 45 iid: 2 pid: 480 pub: Wiley-Blackwell artinfo: ui: 95892005 10.1111/1756-2171.12049 ppf: 221 ppct: 27 formats: fmt: – @attributes: type: T – @attributes: type: P size: 894KB tig: atl: Spatial differentiation and price discrimination in the cement industry: evidence from a structural model. aug: au: Miller, Nathan H. Osborne, Matthew affil: Georgetown University University of Toronto su: United States Economic competition Cement industries Price discrimination Structural frame models Transportation costs Direct costing sug: subj: Economic competition United States Cement Manufacturing Other specialty-line building supplies merchant wholesalers Cement industries Price discrimination Structural frame models Transportation costs Direct costing ab: We estimate a structural model of the cement industry that incorporates spatial differentiation and price discrimination, focusing on the US Southwest over 1983-2003. We leverage the structure of the model to obtain consistent estimates of the underlying parameters using data on market outcomes that are substantially aggregated. Our results indicate that transportation costs around $0.46 per tonne-mile rationalize the data. This friction enables relatively isolated plants to obtain higher prices from nearby customers. We further find that disallowing price discrimination would create $30 million in consumer surplus annually and show how the model can identify suitable divestitures in merger analysis. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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