Fixed Costs and the Product Market Treatment of Preference Minorities

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Steven Berry; Alon Eizenberg; Joel Waldfogel;
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    • jel: jel:L82 | jel:L13

It is well documented that, in the presence of substantial fixed costs, markets offer preference majorities more variety than preference minorities. This fact alone, however, does not demonstrate the market outcome is in any way biased against preference minorities. In ... View more
  • References (31)
    31 references, page 1 of 4

    2See Klepper, Tierney, and Nagin (1983) for a discussion of evidence on criminal justice outcomes by race, Altonji

    and Blank (1999) and Neal and Johnson (1996) for evidence on pay di erentials by race, and Bayer, Casey, Ferreira, and

    McMillan (2012) for evidence on racial patterns of prices paid in housing markets.

    3See also George and Waldfogel (2003).

    4Bresnahan and Reiss (1990) and Berry (1992) use data on the number of rms/products per market to draw inferences

    about post-entry competition. Mazzeo (2002) extends the framework to di erentiated products, again relying only on

    information on the number of products to draw inferences about post-entry competition. [1] Ahmad, E. and P. N. Stern (1984): \The Theory of Reform and Indian Indirect Taxes",

    Journal of Public Economics 25: 259-98 [2] Altonji, J.G., and R. M. Blank (1999): \Race and Gender in the Labor Market", Chapter

    48 of the Handbook of Labor Economics, O. Ashenfelter and D. Card, eds. [3] Armstrong, M., Cowan, S., and J. Vickers (1994): \Regulatory Reform: Economic Analysis

    and British Experience", MIT Press, Cambridge, MA. [4] Bayer, P., Casey, M.D., Ferreira, F., and R. McMillan (2012): \Price Discrimination in the

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