International price discrimination is widely observed, and the European Commission has documented large price differences for identical products for many sectors. Nearly 20 years after introducing the European single market, these remaining price differences are a puzzle.
This project analyses price discrimination theoretically and aims at conducting some empirical testing of the results obtained using data on food markets. Usually, price discrimination is analysed for the case of a monopolist. However, ever y firm that has some scope to set its price may have an incentive to price discriminate if it faces different submarkets. As results for oligopolistic markets are more relevant, thus the models developed in the project will be based on this case.
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