Behavior-based personalized pricing when firms can share customer information

Chongwoo Choe, Noriaki Matsushima, Mark J. Tremblay

We study a model of behavior-based price discrimination where firms can agree to share customer information that can be used for personalized pricing. We show that firms are better off sharing customer information as it softens up-front competition when they gather information, consumers are worse off as a result, but total surplus can increase thanks to the improved quality of matching between firms and consumers.

MoreLess

Year of publication:	March 2020
Authors:	Choe, Chongwoo ; Matsushima, Noriaki ; Tremblay, Mark J.
Publisher:	Osaka, Japan : The Institute of Social and Economic Research, Osaka University
Subject:	Information sharing \| behavior-based price discrimination \| personalized pricing \| Preisdifferenzierung \| Price discrimination \| Theorie \| Theory \| Preismanagement \| Pricing strategy \| Konsumentenverhalten \| Consumer behaviour \| Informationsverbreitung \| Information dissemination