In an experiment on the large language model GPT-4o, a supplier always makes a higher profit if it replaces uniform contract terms with a set of terms between which the customer may choose. The extra profit results from price discrimination. There is a first order and a second order effect. The...

This paper introduces a novel ratio-based framework for analyzing how consumer heterogeneity translates into product differentiation in vertically structured monopoly markets. We consider a monopolist facing a continuum of consumers and a strictly convex production cost function and identify...

Advances in data collection enable firms to use consumer information for personalized pricing. In Clavor'a Braulin's (2023) symmetric two-dimensional model, this reduces prices and profits, while partial privacy yields the highest profits. Extending the model to asymmetric firms and vertically...

We separate the effects of market power and capacity constraints in transportation. A simple model shows imperfect competition - not capacity constraints - generates differential freight price changes across buyers following a demand shock. Consistent with this, difference-in-differences...

This paper deals with the price discrimination issue when a producer applies one price to a buyer in one selling location and another at another selling location for the same product. The specific case under consideration is the consumption of copyrighted products in television broadcasts and...

We study a dynamic game in which a monopolistic seller sequentially discloses information about a binary state to a consumer through priced experiments. The consumer privately observes a binary signal which influences her willingness to pay for information. We show that if buyer types favor...

Fog computing introduces a new dimension to the network edge by pooling diverse resources (e.g., processing power, memory, and bandwidth). However, allocating resources from heterogeneous fog nodes often faces limited capacity. To overcome these limitations, integrating fog nodes with cloud...

The classic third degree price discrimination (3PD) model requires the knowledge of the distribution of buyer valuations and the covariate to set the price conditioned on the covariate. In terms of generating revenue, the classic result shows that 3PD is at least as good as uniform pricing. What...

This paper considers a delegation game between one multi-input firm and one single-input firm engaging in Cournot competition in the downstream market. Both firms purchase a standard input from a core input supplier, and the multi-input firm also needs a supplementary input provided by an...

The aim of the research is to assess the degree of the pricing-to-market (PTM) strategy used in selected European countries, focusing on selected groups of consumer goods. The study uses a literature review in the field of macroeconomics and international finance, as well as statistical and...

This article explores consumer perceptions of different grounds by which online prices can be personalised. We conducted a survey among Dutch consumers (n = 727) presenting them with 25 segmentation bases, drawing from legally permissible and legally prohibited grounds. We then ranked these...

Consumer consent regulation is the cornerstone of modern data privacy regulation such as the European GDPR and the Californian CCPA. By ensuring that consumers can reject any harmful data collection, the regulation seems an effective tool for protecting consumers against price discrimination. By...

In an experiment on the large language model GPT-4o, a supplier always makes a higher profit if it replaces uniform contract terms with a set of terms between which the customer may choose. The extra profit results from price discrimination. There is a first order and a second order effect. The...

Poland disposes on a large stock of mostly aged private passenger cars. In contrast younger cars still play minor role in individual mobility. The contribution analyzes reasons of lagging modernization by focusing on new cars prices with respect to regional price discrimination. It finds in...