We develop an analytical framework to investigate the competitiveimplications of personalized pricing (PP), whereby firms chargedifferent prices to different consumers based on their willingness topay. We embed PP in a model of vertical product differentiation and showhow it affects firms’...

We develop an analytical framework to investigate the competitive implications of personalized pricing technologies (PP). These technologies enable first-degree price discrimination: firms charge different prices to different consumers, based on their willingness to pay. We first show that, even...

In many industries, Internet referral services, hosted either byindependent third-party infomediaries or by manufacturers, serve asdigitally enabled lead generators in electronic markets, directingconsumer traffic to downstream retailers in a distribution network. Thisreshapes the extended...

In many industries, Internet referral services, hosted either by independent third-party infomediaries or by manufacturers, serve as digitally enabled lead-generators in electronic markets, directing consumer traffic to downstream retailers in a distribution network. This reshapes the extended...

The Internet search engine market has seen a proliferation of entrants over the last few years. While Yahoo! was the early market leader, there has been entry by both lower quality engines and higher quality ones (such as Google). Prior work on quality differentiation requires that low quality...

We develop a model of vertical differentiation in the Internet search engine market. A key property of the model is that users who try out one engine may be dissatisfied with the results, and consult another engine in the same session. This residual demand allows lower quality engines to survive...