An empirical investigation of the welfare effects of banning wholesale price discrimination

dc.creatorVillas-Boas, Sofia Berto
dc.date2017-04-01T20:08:00Z
dc.date.accessioned2026-07-09T05:55:37Z
dc.descriptionEconomic theory does not provide sharp predictions on the welfare effects of banning wholesale price discrimination: if downstream costs differences exist then discrimination shifts production inefficiently; towards high cost retailers; so a ban increases welfare; if differences in price elasticity of demand across retailers exist; discrimination may increase welfare if more market is covered; so a ban reduces welfare. Using retail prices and quantities of coffee brands sold by German retailers; I estimate a model of demand and supply and separate cost and demand differences. Simulating a ban on wholesale price discrimination has positive welfare effects in this market; and less if downstream cost differences shrink; or with less competition.
dc.identifierdoi:10.22004/ag.econ.120491
dc.identifierhttps://ageconsearch.umn.edu/record/120491/files/CUDARE%201017R3%20Villas-Boas.pdf
dc.identifierhttp://ageconsearch.umn.edu/record/120491
dc.identifier.urihttp://hdl.handle.net/123456789/570141
dc.languageeng
dc.publisher
dc.sourcehttp://ageconsearch.umn.edu/record/120491
dc.titleAn empirical investigation of the welfare effects of banning wholesale price discrimination
dc.typeText

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