Price discrimination by consumer's purchase history is widely used in regulated industries, such as communication or utilities, both by incumbents and entrants. I show that such discrimination can have surprisingly negative welfare effects - even though prices and industry profits fall, so does...

We study the strategic impacts of behavioral price discrimination (BPD) on manufacturers and retailers in a distribution channel when there are switching costs in consumer demand. Unlike previous empirical studies of behavioral price discrimination, which rely only on differences in price...

1. Monopoly -- 2. Simultaneous quantity competition -- 3. Simultaneous price competition -- 4. Sequential competition -- 5. Regulating imperfectly competitive markets -- 6. R&D incentives -- 7. Mergers and Collusion -- 8. Bundling incentives -- 9. Incomplete information, signaling, and...

This paper studies the incentives for multiproduct duopolists to sell their products as a bundle. It is shown that contrary to the monopoly case bundling may reduce profits and increase consumer rent. This is the case if consumers' reservation values are negatively correlated. The reason is that...