Peak-Load v. Discriminatory Pricing: Evidence from the Golf Industry

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 heavily dependent on tourism have less differential pricing, which we attribute to less peak demand and less peak-load pricing.

Keywords: Peak-Load Pricing, Price Discrimination, Golf

JEL Classification: L11, L83, L33