eprintid: 25722 rev_number: 12 eprint_status: archive userid: 1482 importid: 105 dir: disk0/00/02/57/22 datestamp: 2018-04-17 07:46:48 lastmod: 2021-04-02 15:57:27 status_changed: 2019-05-23 12:39:38 type: monograph metadata_visibility: show creators_name: D'Haultfoeuille, Xavier creators_name: Durrmeyer, Isis creators_name: Février, Philippe creators_idrefppn: 139500340 creators_halaffid: 302113 creators_halaffid: 93477 creators_halaffid: 302113 title: Automobile Prices in Market Equilibrium with Unobserved Price Discrimination ispublished: pub subjects: subjects_ECO abstract: In markets where sellers are able to price discriminate, individuals pay different prices that may be unobserved by the econometrician. This paper considers the structural estimation of a demand and supply model à la Berry et al. (1995) with such price discrimination and limited information on prices taking the form of, e.g., observing list prices from catalogues or average prices. Within this framework, identification is achieved by using supply-side conditions, provided that the marginal costs of producing and selling the goods do not depend on the characteristics of the buyers. The model can be estimated by GMM using a nested fixed point algorithm that extends BLP’s algorithm to our setting. We apply our methodology to estimate the demand and supply in the French new automobile market. Our results suggest that discounting arising from price discrimination is important. The average discount is estimated to be 9.6%, with large variation depending on buyers’ characteristics and cars’ specifications. Our results are consistent with other evidence on transaction prices in France. date: 2017-10 date_type: published publisher: TSE Working Paper official_url: http://tse-fr.eu/pub/32136 faculty: tse divisions: tse keywords: demand and supply keywords: unobserved transaction prices keywords: price discrimination keywords: automobiles language: en has_fulltext: TRUE subjectsJEL: JEL_C51 subjectsJEL: JEL_D12 view_date_year: 2017 full_text_status: public monograph_type: working_paper series: TSE Working Paper volume: 17-854 place_of_pub: Toulouse pages: 58 institution: Université Toulouse 1 Capitole department: Toulouse School of economics book_title: TSE Working Paper oai_identifier: oai:tse-fr.eu:32136 harvester_local_overwrite: department harvester_local_overwrite: faculty harvester_local_overwrite: institution harvester_local_overwrite: place_of_pub harvester_local_overwrite: pages harvester_local_overwrite: publish_to_hal harvester_local_overwrite: pending harvester_local_overwrite: creators_affiliation harvester_local_overwrite: hal_id harvester_local_overwrite: hal_version harvester_local_overwrite: hal_url harvester_local_overwrite: hal_passwd harvester_local_overwrite: creators_idrefppn oai_lastmod: 2019-01-10T16:12:00Z oai_set: tse site: ut1 publish_to_hal: FALSE citation: D'Haultfoeuille, Xavier, Durrmeyer, Isis and Février, Philippe (2017) Automobile Prices in Market Equilibrium with Unobserved Price Discrimination. TSE Working Paper, n. 17-854, Toulouse document_url: https://publications.ut-capitole.fr/id/eprint/25722/1/wp_tse_854.pdf