Behavior-based pricing (BBP) refers to the practice in which firms collect consumers' purchase history data, recognize repeat and new consumers from the data, and offer them different prices. BBP is a prevalent practice for firms and a worldwide concern for consumers. Extant research has...

Firms in many industries may obtain superior knowledge of customer preferences, whereas customers often need costly efforts to learn their match values. In this pa-per, we examine the optimal pricing strategies for a firm with superior knowledge, when customers can reduce information asymmetry...