Economic theory does not provide sharp predictions on the welfare effects of banning wholesaleprice discrimination: if downstream cost differences exist, then discrimination shifts productioninefficiently, toward high-cost retailers, so a ban increases welfare; if differences in price...

In the current paper, we quantify the effect that fuel prices have on vehicle prices' responsiveness to fuel economy. We apply a hedonic price model to the German automobile market by using data on detailed technical specifications of high-sales vehicles of three sequential model years. In the...