Behavior-based personalized pricing when firms can share customer information

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.

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Year of publication:	2020
Authors:	Choe, Chongwoo ; Matsushima, Noriaki ; Tremblay, Mark J.
Publisher:	Osaka : Osaka University, Institute of Social and Economic Research (ISER)
Subject:	Information sharing \| behavior-based price discrimination \| personalized pricing

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Series:	ISER Discussion Paper ; 1083
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	1694154327 [GVK] hdl:10419/230488 [Handle]
Classification:	D43 - Oligopoly and Other Forms of Market Imperfection ; L13 - Oligopoly and Other Imperfect Markets
Source:	EconStor

Persistent link: https://www.econbiz.de/10012430035