Preview

Journal of Modern Competition

Advanced search

Price discrimination: economic theory and law enforcement practice

EDN: YSXUPR

Abstract

The article concerns price discrimination, in particular, the way price discrimination practice is regulated in Russia. The analysis is based on the economic theory of price discrimination and the law enforcement practice of the corresponding legal norms in the US and Europe. The main goal of this article is to reveal possible weaknesses in the legal framework of the price discrimination practice in Russia. The analysis was motivated by a number of cases on price discrimination opened by the Federal Antimonopoly Service of Russia, and in particular, the case about the difference in the price of mobile communication services within the «home region» and «in roaming». The results of the analysis are the following. First, legal uncertainty in the area of price discrimination was identified. Second, it was shown that the use of the per se approach to the practice of price discrimination in Russia leads to the welfare loss. Third, it was also shown that the norms on price discrimination in Russia might be insufficient to control negative effects of some types of price discrimination, in particular in cases where price discrimination does not require a company to have dominant position in the market.

About the Author

A. Shastitko
The New School for Social Research; Russian Presidential Academy of National Economy and Public Administration; Lomonosov Moscow State University


References

1. Авдашева С. Б., Хомик О. С., Храмова М. Н. Влияние бизнес-практик российских розничных сетей на положение поставщиков до и после введения законодательной регламентации: оценка на основе микроданных // Российский журнал менеджмента. 2015. Т. 13. № 3. С. 3-38.

2. Авдашева С. Б., Шаститко А. Е. Конкурентная политика: состав, структура, система // Современная конкуренция. 2010. № 1 (19).

3. Шаститко А. Е., Павлова Н. С. Пятый антимонопольный пакет: множим сущности или отвечаем на вызовы? // Конкуренция и право. 2018. № 2. C. 20-30.

4. Armstrong M., Vickers J. Competitive Price Discrimination // The RAND Journal of Economics. 2001. Vol. 32. No. 4. Р. 579-605.

5. Asplund M., Eriksson R., Strand N. Price Discrimination in Oligopoly: Evidence from Regional Newspapers // Journal of Industrial Economics 0022-1821. 2008. Vol. LVI. No. 2.

6. Beckert W., Smith H., Takahashi Y. Competitive price discrimination in a spatially differentiated intermediate goods market // University of London Working Paper, 2015.

7. Corts K. S. Third-Degree Price Discrimination in Oligopoly: All-Out Competition and Strategic Commitment // The RAND Journal of Economics. 1998. Vol. 29. No. 2. P. 306-323.

8. Cuddeford-Jones M. Effective Revenue Management in the Hospitality Industry // Eye for Travel. 2013. White Paper.

9. Geradin D., Petit N. Price Discrimination under EC Competition Law: The Need for a case- by-case Approach // The Global Competition Law Centre. 2005. Working Papers Series GCLC.

10. Grennan M. Price Discrimination and Bargaining: Empirical Evidence from Medical Devices // American Economic Review. 2013. Vol. 103. No. 1. P. 145-177.

11. Holmes T. J. The Effects of Third-Degree Price Discrimination in Oligopoly // The American Economic Review. 1989. Vol. 79. No. 1. P. 244-250.

12. Motta M. Competition policy. Theory and practice. Cambridge University Press. Cambridge. 2004.

13. Nevo A., Wolfram C. Why do manufacturers issue coupons? An empirical analysis of breakfast cereals // RAND Journal of Economics. 2002. Vol. 33. No. 2. P. 319-339.

14. Pike C. Price discrimination // DAF/COMP. 2016. 15.

15. Schmalensee R. Output and Welfare Implications of Monopolistic Third-Degree Price Discrimination // American Economic Review. 1981. Vol. 71. P. 242-247.

16. Stigler G. J. The Theory of Price. Macmillan Company. 1987. New York.

17. Varian H. R. Price Discrimination and Social Welfare // American Economic Review. 1985. Vol. 75. No. 4. P. 870-875.

18. Varian H. R. Price Discrimination. In R. Schmalensee and R. D. Willig, eds., The Handbook of Industrial Organization. 1989. Amsterdam: North-Holland.


Review

For citations:


Shastitko A. Price discrimination: economic theory and law enforcement practice. Journal of Modern Competition. 2018;12(6):27-38. EDN: YSXUPR

Views: 3


Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 License.


ISSN 1993-7598 (Print)
ISSN 2687-0657 (Online)