Tuesday, June 22, 2004

OK, a couple of eggheads, one at Berkeley and one at Boston University did an analysis of Yellow Pages pricing model to determine if price discrimination exists in the Yellow Pages industry.

Using the assumption that nearly all Yellow Pages advertising is sold at full rate card (you may continue reading after you stop laughing), they found that where competition exists, pricing tends to have some more flexibility especially toward the upper range of the prices.

The aggressive independents have created quite a stir with utility publishers, and this has benefited the advertiser by keeping markets competitive.

Nice effort folks, but I don't believe you capture the essence of the market reality.


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