TY  - JOUR
AU  - Graddy,Kathryn
AU  - Hall,George
TI  - A Dynamic Model of Price Discrimination and Inventory Management at the Fulton Fish Market
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 15019
PY  - 2009
Y2  - May 2009
UR  - http://www.nber.org/papers/w15019
L1  - http://www.nber.org/papers/w15019.pdf
N1  - Author contact info:
Kathryn Graddy
Department of Economics, Mail Stop 021
Brandeis University, P.O. Box 549110
415 South Street
Waltham, Massachusetts
02454-9110
E-Mail: kgraddy@brandeis.edu

George Hall
Department of Economics, Mail Stop 21
Brandeis University
 P.O. Box 549110
415 South Street
Waltham, MA 02454-9110
Tel: 781-736-2242
Fax: 781- 736-2269
E-Mail: ghall@brandeis.edu
AB  - 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.
ER  -