Title: A dynamic model of price discrimination and inventory management at the Fulton fish market
First published: 2009
Description: "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"--National Bureau of Economic Research web site.
LC classification: HB1