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

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

By: Andreas Bielig  
Open Access
|Sep 2024

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.

DOI: https://doi.org/10.2478/ijme-2024-0019 | Journal eISSN: 2543-5361 | Journal ISSN: 2299-9701
Language: English
Page range: 285 - 297
Submitted on: Jul 12, 2023
Accepted on: Apr 12, 2024
Published on: Sep 20, 2024
Published by: Warsaw School of Economics
In partnership with: Paradigm Publishing Services
Publication frequency: 4 issues per year

© 2024 Andreas Bielig, published by Warsaw School of Economics
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.