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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...
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Firms that serve a large market with many diverse consumer types use discriminatory or nonlinear pricing to extract higher revenue, inducing consumers to separate by self-selecting from a large number of tariff options. But the extent of price discrimination must often be tempered by the high...
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Multi-part tariffs, such as menus of two-part tariffs and three-part tariffs, are widely used in industry, especially for pricing of information goods, online services, telecommunications products, etc. This paper examines the effectiveness of these price structures for price discriminating...
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This paper studies product bundling in a distribution channel where a downstream retailer combines component goods produced by separate manufacturers acting independently. Past literature offers deep insights about bundling by a single firm whose unit costs are not impacted by choice of selling...
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