The Timing of Sales
- 1 July 1984
- journal article
- Published by Oxford University Press (OUP) in The Review of Economic Studies
- Vol. 51 (3) , 353-368
- https://doi.org/10.2307/2297428
Abstract
This paper presents a model of intertemporal price discrimination. A fixed number of sellers produce a homogeneous good. Consumers with different preferences enter the market in each period and leave when they make a purchase. The sellers typically vary their prices over time, charging a high price in most periods, but occasionally cutting the price to sell to a large group of customers with a low reservation price. In some equilibria, all stores lower their price at the same time and to the same level.Keywords
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