Problem definition: Firms heavily invest in big-data technologies to collect consumer data and infer consumer preferences for price discrimination. However, consumers can use technological devices to manipulate their data and fool firms to obtain better deals. We examine how a firm invests in...

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...