A dynamic model of price discrimination and inventory management at the Fulton Fish Market

Kathryn Graddy () and George Hall

Journal of Economic Behavior & Organization, 2011, vol. 80, issue 1, 6-19

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 wholesaler must post a single price to all retailers. We find the added revenue the wholesaler receives from price discriminating to be small.

Keywords: Fish; Price discrimination; Yield management; Dynamic programming; Indirect inference (search for similar items in EconPapers)
JEL-codes: C15 D21 D4 L1 L81 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (6)

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Related works:
Working Paper: A Dynamic Model of Price Discrimination and Inventory Management at the Fulton Fish Market (2009)
Working Paper: A Dynamic Model of Price Discrimination and Inventory Management at the Fulton Fish Market (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:80:y:2011:i:1:p:6-19

DOI: 10.1016/j.jebo.2010.08.018

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