The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Price Discrimination (Empirical Studies)

  • Frank Verboven
Reference work entry


Price discrimination occurs when the prices of similar products sold by the same firm show variation that cannot be attributed to cost variation. Recent empirical work has identified the presence of both direct and indirect price discrimination, after cost-based explanations have been accounted for. Furthermore, there is increasing evidence on the sources of price discrimination. The extent of price discrimination has often been found to increase as competition intensifies, in contrast to conventional wisdom but consistent with new theoretical insights. Finally, various empirical studies have considered the effects of price discrimination on profits, consumer welfare and efficiency.


Competition and price discrimination Cross-price elasticities Gini coefficient Monopoly price discrimination Multi-product firms Poaching Price discrimination Price elasticity Single-product firms 
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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Frank Verboven
    • 1
  1. 1.