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Peak-Load Versus Discriminatory Pricing: Evidence from the Golf Industry

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Abstract

Using a unique dataset on the golf industry we analyze the weekend premium in golf course fees. Since both peak-load pricing and price discrimination may be at play, we attempt to separate these two forms of pricing. We find that as competition increases there is a decrease in the weekend premium, which we attribute to price discrimination. Additionally, we find that resort courses and courses that are heavily dependent on tourism have less differential pricing, which we attribute to less peak demand and less peak-load pricing.

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Authors and Affiliations

  1. DePaul University, Chicago, IL, USA

    Frank F. Limehouse

  2. John E. Walker Department of Economics, Clemson University, Clemson, SC, USA

    Michael T. Maloney

  3. Stillman School of Business, Seton Hall University, 400 South Orange Ave., JH 674, South Orange, NJ, 07079, USA

    Kurt W. Rotthoff

Authors
  1. Frank F. Limehouse
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  2. Michael T. Maloney
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  3. Kurt W. Rotthoff
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Correspondence to Kurt W. Rotthoff.

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Limehouse, F.F., Maloney, M.T. & Rotthoff, K.W. Peak-Load Versus Discriminatory Pricing: Evidence from the Golf Industry. Rev Ind Organ 40, 151–165 (2012). https://doi.org/10.1007/s11151-011-9322-8

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  • DOI: https://doi.org/10.1007/s11151-011-9322-8

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