This paper assesses the welfare e⁄ects of rms ability to use data for group and personalized pricing in markets with unit ( q = 1) and multi-unit demand consumers ( q 1). The disutility cost of not consuming the ideal good is a function of units purchased and can increase at a decreasing rate...

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...

This paper provides useful implications for managers and marketing practitioners using data on consumers' purchase history for price discrimination purposes. It is also useful for competition policy agencies and consumer advocates. It highlights that the shape of preferences plays an important...