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A Simple Model of Intertemporal Price Discrimination


  • Mark D. White

    () (Department of Political Science, Economics, and Philosophy, College of Staten Island)


Many products are sold in identical form at different times and at different prices. Motion pictures are shown at most movie theaters at full price for weeks after initial release, after which they may be shown in bargain theaters for a much lower price. Upon initial release, compact discs are sold at retail outlets for a high price and several months later may be available through music clubs at significantly lower cost. Book clubs and movie clubs offer similar arrangements. At all times of release, each of these products is identical. The only difference is the time at which each release is available to the consumer. Waiting for the later release of any of these products, therefore, may involve a time cost. This opportunity cost may differ among consumers depending on their attitudes regarding waiting to purchase a product.

Suggested Citation

  • Mark D. White, 2004. "A Simple Model of Intertemporal Price Discrimination," Eastern Economic Journal, Eastern Economic Association, vol. 30(3), pages 487-492, Summer.
  • Handle: RePEc:eej:eeconj:v:30:y:2004:i:3:p:487-492

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    References listed on IDEAS

    1. David Neumark & Roy J. Bank & Kyle D. Van Nort, 1996. "Sex Discrimination in Restaurant Hiring: An Audit Study," The Quarterly Journal of Economics, Oxford University Press, vol. 111(3), pages 915-941.
    2. Peter A. Riach & Judith Rich, 1995. "An Investigation of Gender Discrimination in Labor Hiring," Eastern Economic Journal, Eastern Economic Association, vol. 21(3), pages 343-356, Summer.
    3. Riach, Peter A & Rich, Judith, 1991. "Testing for Racial Discrimination in the Labour Market," Cambridge Journal of Economics, Oxford University Press, vol. 15(3), pages 239-256, September.
    4. Susan Averett & Sanders Korenman, 1996. "The Economic Reality of the Beauty Myth," Journal of Human Resources, University of Wisconsin Press, vol. 31(2), pages 304-330.
    5. Jerry M. Newman, 1978. "Discrimination in Recruitment: An Empirical Analysis," ILR Review, Cornell University, ILR School, vol. 32(1), pages 15-23, October.
    6. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    7. repec:mes:postke:v:14:y:1991:i:2:p:143-150 is not listed on IDEAS
    8. Hamermesh, Daniel S & Biddle, Jeff E, 1994. "Beauty and the Labor Market," American Economic Review, American Economic Association, vol. 84(5), pages 1174-1194, December.
    9. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    10. James J. Heckman, 1998. "Detecting Discrimination," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 101-116, Spring.
    11. Altonji, Joseph G. & Blank, Rebecca M., 1999. "Race and gender in the labor market," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 48, pages 3143-3259 Elsevier.
    12. Yinger, John, 1986. "Measuring Racial Discrimination with Fair Housing Audits: Caught in the Act," American Economic Review, American Economic Association, vol. 76(5), pages 881-893, December.
    13. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-661, September.
    14. Michael Firth, 1981. "Racial Discrimination in the British Labor Market," ILR Review, Cornell University, ILR School, vol. 34(2), pages 265-272, January.
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    More about this item


    Price Discrimination;

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets


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