Price Discrimination in Broadway Theater
AbstractA common thread in the theory literature on price discrimination has been the ambiguous welfare effects for consumers and the rise in profit for firms, relative to uniform pricing. In this study I resolve the ambiguity for consumers and quantify the benefit for a firm. I describe a model of price discrimination that includes both second-degree and third-degree price discrimination. Using data from a Broadway play, I estimate the structural model and conduct various experiments to investigate the implications of alternative pricing policies. The observed price discrimination may improve the firm's profit by approximately 5%, relative to uniform pricing, while the difference for aggregate consumer welfare is negligible. Also, I show that the gain from changing prices in the face of fluctuating demand is small under the observed price discrimination.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by The RAND Corporation in its journal RAND Journal of Economics.
Volume (Year): 35 (2004)
Issue (Month): 3 (Autumn)
Contact details of provider:
Web page: http://www.rje.org
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- STROUKAL Dominik, 2013. "Price Discrimination On The Marijuana Market: Schwag Or Endo?," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 8(2), pages 128-136, August.
- Mortimer, Julie Holland, 2007.
"Price Discrimination, Copyright Law, and Technological Innovation: Evidence From The Introduction of DVDs,"
3425914, Harvard University Department of Economics.
- Julie Holland Mortimer, 2007. "Price Discrimination, Copyright Law, and Technological Innovation: Evidence From The Introduction of DVDs," The Quarterly Journal of Economics, MIT Press, vol. 122(3), pages 1307-1350, 08.
- Julie Holland Mortimer, 2005. "Price Discrimination, Copyright Law, and Technological Innovation: Evidence from the Introduction of DVDs," NBER Working Papers 11676, National Bureau of Economic Research, Inc.
- Englmaier, Florian & Gratz, Linda & Reisinger, Markus, 2012. "Price Discrimination and Fairness Concerns," Discussion Papers in Economics 12735, University of Munich, Department of Economics.
- Huang, Ching-I, 2007.
"Estimating Demand for Cellular Phone Service under Nonlinear Pricing,"
6459, University Library of Munich, Germany.
- Ching-I Huang, 2008. "Estimating demand for cellular phone service under nonlinear pricing," Quantitative Marketing and Economics, Springer, vol. 6(4), pages 371-413, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.