Personalized pricing with a price sensitive demand

This paper assesses the profit and welfare effects of firms' ability to charge personalized prices in markets where consumer demand is sensitive to price changes. In a mill pricing model, regardless of demand elasticity, personalized pricing (PP) raises consumer surplus at the expense of profits. In contrast, in a delivered pricing model, if demand is sufficiently elastic, PP boosts profits at the expense of consumer surplus and overall welfare. Moving from PP in a mill to a delivery pricing model, benefits industry profits and harms consumer surplus and welfare

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Year of publication:	[2022]
Authors:	Esteves, Rosa Branca ; Shuai, Jie
Publisher:	[S.l.] : SSRN
Subject:	Preismanagement \| Pricing strategy \| Preiselastizität \| Price elasticity \| Theorie \| Theory \| Konsumentenverhalten \| Consumer behaviour \| Preisdifferenzierung \| Price discrimination \| Nachfragesystem \| Demand system

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