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Passenger car market and regional price discriminations for new cars: Case study and empirical analysis for Poland 2004–2021

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  • Bielig Andreas

    (Collegium of World Economy, SGH Warsaw School of Economics, Warsaw, Poland)

Abstract

Poland disposes on a large stock of mostly aged private passenger cars. In contrast younger cars still play minor role in individual mobility. The contribution analyzes reasons of lagging modernization by focusing on new cars prices with respect to regional price discrimination. It finds in 2004-2021 substantially increasing new cars prices and regional price discrimination between Poland and Germany. Price differentials were positive, with lower prices in Poland, and increased during time. Producers discriminated by prices increasingly but also limited arbitrage transactions by controlling excess differentials. Optimal regional price discrimination could support car markets developments in Poland by stock age compositions shifts towards younger cars. However, applied discrimination proves in observed market environments not sufficient to achieve a great car market transition in near future.

Suggested Citation

  • Bielig Andreas, 2024. "Passenger car market and regional price discriminations for new cars: Case study and empirical analysis for Poland 2004–2021," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 60(4), pages 285-297.
    • Handle: RePEc:vrs:ijomae:v:60:y:2024:i:4:p:285-297:n:1002
    DOI: 10.2478/ijme-2024-0019
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    More about this item

    Keywords

    price discrimination; passenger cars; market development; Poland;
    All these keywords.

    JEL classification:

    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment

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