Market Segmentation and Product Steering

A monopolistic seller possesses an inventory containing distinct products, each consumer wishes to buy a single product, and the seller can steer consumers’ choices. We fully characterize the producer-consumer surplus pairs induced by market segmentation when the number of products is large. We uncover a trade-off between consumer surplus and social welfare, prove the redundancy of price discrimination, and analyze the welfare implications of privacy. We apply our results to study market segmentation arising from the sale of consumer data by data intermediaries

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Year of publication:	[2023]
Authors:	Terstiege, Stefan ; Vigier, Adrien
Publisher:	[S.l.] : SSRN
Subject:	Marktsegmentierung \| Market segmentation \| Produktivität \| Productivity \| Theorie \| Theory

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