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Low price guarantee, are you guaranteed the lowest price
2008 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

The purpose of this thesis is to examine the economic and competitive effects from low-price guarantees in the Swedish electronics market. More exactly, it studies the effects on price when a LPG is offered in order to find whether the guarantee is tacit collusion-facilitating, price- discriminating, or simply a signal of low-price. The first two theories are most likely anti competitive while the third is pro competitive. This thesis does not provide any conclusive results regarding whether the LPG is pro or anti competitive. Instead it suggests that the LPG offered by one firm is a signal of low-price, but that it most likely works as a device to facilitate price discrimination for another firm. However, the overall effect of the LPG on this market is most likely pro competitive since the data shows that the general price-level is decreasing towards the price of the firm which actually has the lowest price.

Place, publisher, year, edition, pages
Keyword [en]
Social Behaviour Law, Low-price guarantee
Keyword [sv]
Samhälls-, beteendevetenskap, juridik
URN: urn:nbn:se:ltu:diva-52882ISRN: LTU-CUPP--08/354--SELocal ID: 9f6f9c65-cf38-4710-832f-3e8221dedd57OAI: diva2:1026254
Subject / course
Student thesis, at least 15 credits
Educational program
Economics, bachelor's level
Validerat; 20101217 (root)Available from: 2016-10-04 Created: 2016-10-04Bibliographically approved

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