Title: Price discrimination in value chains for cola drinks in the Czech Republic

Authors: Kateřina Kašparová; Karel Šrédl; Jindřich Ploch; Roman Svoboda

Addresses: Faculty of Economics and Management, Czech University of Life Sciences, Kamýcká 129, Prague, 165 00, Czech Republic ' Faculty of Economics and Management, Czech University of Life Sciences, Kamýcká 129, Prague, 165 00, Czech Republic ' Department of Air Transport, University College of Business in Prague, Spálená 76/14, 110 00 Nové Město, Czech Republic ' Faculty of Economics and Management, Czech University of Life Sciences, Kamýcká 129, Prague, 165 00, Czech Republic

Abstract: The sale of beverages whose production has the character of a monopoly due to the original recipe used in their production has been chosen as the subject of this research. The purpose of this paper is to express the rate of exploitation of the consumer surplus in second-degree price discrimination in relation to selected drinks of monopolistic character. This concerns the advantage of consumers' buying individual drinks compared with buying large (cumulative) packages of the product. The methodology of scientific research is based on monitoring the prices of selected beverages in international retail chains and a comparative analysis of collected data. The survey shows that, thanks to second-degree price discrimination, the seller receives a consumer surplus amounting to 1/3 for the sale of individual pieces of the product.

Keywords: beverage; beverage industry; cola drink; consumer surplus; Czech Republic; firm; monopoly; price discrimination; profit; retail chain.

DOI: 10.1504/IJVCM.2018.095262

International Journal of Value Chain Management, 2018 Vol.9 No.4, pp.343 - 358

Received: 09 Dec 2017
Accepted: 27 Feb 2018
Published online: 02 Oct 2018 *

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