A Dynamic Model of Price Discrimination and Inventory Management at the Fulton Fish Market /

We estimate a dynamic profit-maximization model of a fish wholesaler who can observe consumer characteristics, set individual prices, and thus engage in third-degree price discrimination. Simulated prices and quantities from the model exhibit the key features observed in a set of high quality trans...

Ausführliche Beschreibung

Gespeichert in:
1. Verfasser:
Graddy, Kathryn
Körperschaft:
National Bureau of Economic Research
Weitere Verfasser:
Hall, George J.
Format:
Elektronisch E-Book
Sprache:
Englisch
Veröffentlicht:
Cambridge, Mass. National Bureau of Economic Research 2009.
Zusammenfassung:
We estimate a dynamic profit-maximization model of a fish wholesaler who can observe consumer characteristics, set individual prices, and thus engage in third-degree price discrimination. Simulated prices and quantities from the model exhibit the key features observed in a set of high quality transaction-level data on fish sales collected at the Fulton fish market. The model's predictions are then compared to the case in which the dealer must post a single price to all customers. We find the cost to the dealer of posting a uniform price to be extremely small.
Umfang:
1 online resource: illustrations (black and white);
Anmerkungen:
May 2009.
Schlagworte: