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Temporal price dispersion is measured by comparing how stores' prices are ranked over time.
Temporal price dispersion arises when the store's position in a price-based ranking changes over time.
Varian (1980) was among the first to distinguish between spatial and temporal price dispersion.
Existing approaches are difficult to solve the problem because they do not make full use of temporal price differences.
Recall that a smaller value of beta means that the airline is less able to exploit temporal price discrimination.
We observe temporal price dispersion when the identity of the store offering the lowest (and highest) price varies over time.
Similar(49)
He also suggests that the temporal pricing discrimination adopted by duopolistic low-cost markets is a threat to the recovery of all fixed costs.
Indeed, the WZH reservation model, which R&C's brokerage model extends, is described by the authors as a mechanism that "extracts revenue similar to that of a monopoly provider practicing temporal pricing discrimination with a user population whose preference distribution is known in advance"[11]).
However, the existing formulations do not explicitly deal with inter-temporal price and location linkages.
As our numerical results show, storage facilities do not only reduce the inter-temporal price volatility of a market, but may considerably change the inter-regional price structure.
However, we believe that the pricing strategy pursued by FCSs greatly undermines the ability of LCCs to employ inter-temporal price discrimination.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com