Sales: Demand-supply variation or price discrimination?

The objective of this paper is to test the relative importance of price discrimination as an explanation for sales on major appliances. Using data on sales by Sears stores in San Diego, we conclude that for major appliance sales, price discrimination seems to be the most important explanation. The second section describes briefly the theoretical explanations for sales. The third section describes the test and the results. The fourth section presents more stylized facts about appliance sales. The last section presents the conclusion.