Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
883952 | Journal of Economic Behavior & Organization | 2011 | 14 Pages |
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.
Related Topics
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Authors
Kathryn Graddy, George Hall,