Author ORCID Identifier
Date Available
7-30-2021
Year of Publication
2019
Degree Name
Doctor of Philosophy (PhD)
Document Type
Doctoral Dissertation
College
Business and Economics
Department/School/Program
Economics
First Advisor
Dr. Frank Scott
Abstract
This dissertation analyzes the men's razor market to examine whether a monopolist can implement price discrimination for the complementary goods. I estimate a demand system for razors using the random coefficient logit model with market level sales data from the Nielsen Store Scanner dataset and individual demographic data from the March CPS. The estimated parameters are used to construct price-cost markups. By comparing the markups of different products, I find evidence that Gillette uses a two-part tariff strategy. This conclusion can be generalized as that of a monopolist setting the prices of tie-in products consistent with a two-part tariff.
Digital Object Identifier (DOI)
https://doi.org/10.13023/etd.2019.317
Funding Information
This research was supported by the China Scholarship Council and the Department of Economics at the University of Kentucky.
Recommended Citation
Yang, Zheng, "Price Discrimination on Complementary Goods: Evidence from the Men's Shaving Razor Market" (2019). Theses and Dissertations--Economics. 41.
https://uknowledge.uky.edu/economics_etds/41
