The past decade has seen a virtual explosion of information about customers and their preferences. This information potentially allows companies to increase their revenues, in particular since modern technology enables price changes to be effected at minimal cost. At the same time, companies...

The past decade has seen a virtual explosion of information about customers and their preferences. This information potentially allows companies to increase their revenues, in particular since modern technology enables price changes to be effected at minimal cost. At the same time, companies...

We consider a manufacturer's dual distributions channels consisting on the one hand of a virtual (online) channel operated directly by a manufacturer and on the other hand of a real (offline) channel operated by an intermediate retailer. Customers are assumed heterogeneous in their virtual...