We study a duopoly model where each firm chooses personalized prices for its targeted consumers, who can be active or passive in identity management. Active consumers can bypass price discrimination and have access to the price offered to non-targeted consumers, which passive consumers cannot....

This Policy Bulletin measures the gains to consumer welfare of the new "all distance"/"all you can eat" competition produced by the market-opening provisions of the Telecommunications Act of 1996. Analysis reveals that the consumer welfare gain amounts to approximately $10 billion per year, and...

Electronic coordination links markets at different locations that have initially been (partially) separated by transport costs. Rising competitive pressure should in turn affect incentives to differentiate products. In this paper investment decisions concerning transport cost reduction and...

We analyze competition between data intermediaries collecting information on consumers, which they sell to firms for price discrimination purposes. We show that competition between data intermediaries benefits consumers by increasing competition between firms, and by reducing the amount of...