Behavior and characteristic-based price discrimination

Risultato della ricerca: Contributo in rivistaArticolo in rivista

6 Citazioni (Scopus)

Abstract

We develop a model of behavior- and characteristic-based discriminatory pricing where consumers are heterogeneous both in tastes and in price sensitivity. Each firmis able to distinguish between the consumers that have bought from it and those that have bought from the rival. Furthermore, each firm learns the price sensitivity of their own consumers. We show that using this additional information may yield higher profits than uniform pricing provided that consumers are heterogeneous enough with respect to price sensitivity. We also discuss consumer surplus implications of such behaviorand characteristic-based price discrimination, and we show that the impact of price discrimination depends on both the consumer type and the level of consumers’ heterogeneity.
Lingua originaleEnglish
pagine (da-a)237-250
Numero di pagine14
RivistaJOURNAL OF ECONOMICS & MANAGEMENT STRATEGY
DOI
Stato di pubblicazionePubblicato - 2018

Keywords

  • price discrimination

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