Intertemporal Price Discrimination in Storable Goods Markets
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چکیده
We study intertemporal price discrimination when consumers can store for future consumption needs. To make the problem tractable we o¤er a simple model of demand dynamics, which we estimate using market level data. Optimal pricing involves temporary price reductions that enable sellers to discriminate between price sensitive consumers, who anticipate purchases for future consumption, and less price-sensitive consumers. We empirically quantify the impact of intertemporal price discrimination on pro ts and welfare. We nd that sales: (1) capture 25-30% of the pro t gap between non-discriminatory and (unattainable) third degree price discrimination pro ts, (2) increase total welfare, and (3) impact consumer welfare modestly.
منابع مشابه
Intertemporal Price Discrimination in Storable Goods Markets
We study intertemporal price discrimination when consumers can store for future consumption needs. To make the problem tractable we o¤er a simple model of demand dynamics, which we estimate using market level data. Optimal pricing involves temporary price reductions that enable sellers to discriminate between price sensitive consumers, who anticipate future needs, and less price-sensitive consu...
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