Imperfect behavior-based price discrimination

Risultato della ricerca: Contributo in rivistaArticolo in rivista

9 Citazioni (Scopus)

Abstract

In this article, we develop a model encompassing behavior-based discriminatory pricing as a limit case of a more general framework where firms have incomplete information about consumers’ purchase histories. We show that information accuracy has a non-monotonic impact on profits and the worst situation for firms is when information accuracy is intermediate. We also discuss welfare and consumer surplus implications of information accuracy. While welfare monotonically decreases with the level of information accuracy, there is an inverse U-shape relationship between consumers surplus and information accuracy.
Lingua originaleEnglish
pagine (da-a)563-583
Numero di pagine21
RivistaJOURNAL OF ECONOMICS & MANAGEMENT STRATEGY
Stato di pubblicazionePubblicato - 2016

Keywords

  • BBPD

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