Author ORCID Identifier

https://orcid.org/0000-0001-5963-7020

Year of Publication

2019

Degree Name

Doctor of Philosophy (PhD)

Document Type

Doctoral Dissertation

College

Business and Economics

Department

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.

Available for download on Friday, July 30, 2021

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