Industrial organization

Topic 1: Market power and price discrimination

+ Focus on the airline industry


Lecture

  1. Market structures
    • From perfect competition to monopoly
    • Measures:
  2. Market definition:
  3. Price discrimination
    • Second-degree vs. third-degree price discrimination
      • Case study: ticket restrictions in the airline industry by 
    • Bundling
      • Case study: bundle-size pricing in the theater industry by Chu et al. 2011

Feel free to consult the textbook as well, see Pepall et al. (2014), pp.  47-56, 174-185.

Seminar

  • Homework for all:  Carefully read the introduction of  Chandra and Lederman (2018). You should be able to answer questions about the main story of the paper (from your memory).
  • Projects:
    • Task 1: Use the theoretical model of Chandra and Lederman (2018),  Section I with all the relevant references (especially Holmes (1989) and Stole (2007)) to explain equation 2 and use the three-type example to explain why competition can increase or decrease price differences. Explain each step of your analysis, i.e. derive everything from (properties of) demand or cost functions. Use a board or slides.
    • Task 2: Replicate the empirical analysis (Tables 4, 5, and 8 and Figures 2 and 3) of Chandra and Lederman (2018) in R (see the data and code in Stata. It is forbidden to share the data or to upload it to ChatGPT). Using RStudio (or equivalent), Markdown, or a presentation, go through the code, explain step-by-step how you created the main results of the paper, and interpret the results.



Předchozí
Následující