Please use this identifier to cite or link to this item: http://hdl.handle.net/11718/11386
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dc.contributor.authorPingali, Viswanath
dc.date.accessioned2013-11-21T11:11:12Z
dc.date.available2013-11-21T11:11:12Z
dc.date.copyright2012-07
dc.date.issued2013-11-21
dc.identifier.urihttp://hdl.handle.net/11718/11386
dc.description.abstractWhat is the effect of competition on prices in a market where the product is offered at different quality levels? Would the increase in competition reduce the price of high quality good more than the low quality good? These are the questions examined in this paper in the context of the video rental industry. Videos can be classified into DVD and VHS. Firms can also be categorized as branded stores that belong to a major chain and unbranded stores that do not belong to any major national chain. As competition increases prices of both DVD and VHS should decrease, but in theory it is not clear which one will decrease more. Moreover branded and unbranded stores may respond differently to the change in competition. My empirical results indicate that as competition increases, (a) for branded stores, the price of the high quality good (DVD) falls more than that of the low quality good (VHS), (b) for unbranded stores, we observe the opposite effect.en_US
dc.language.isoenen_US
dc.relation.ispartofseries;W.P. No. 2012-07-04
dc.subjectPrice discriminationen_US
dc.subjectBrand effecten_US
dc.subjectDifferentiated productsen_US
dc.titleBrand Effect and Price Discrimination in the Video Rental Industryen_US
dc.typeWorking Paperen_US
Appears in Collections:Working Papers

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