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

Kathryn Graddy () and George Hall ()

No 15019, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: 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.

JEL-codes: D21 D4 L1 L81 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-mic and nep-mkt
Date: 2009-05
Note: IO
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Working Paper: A Dynamic Model of Price Discrimination and Inventory Management at the Fulton Fish Market (2009)
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