Behavior-based price discrimination and customer information sharing
Abstract
This article investigates the incentives and the effects of information sharing among rival
firms about the identities of their past customers in a two-period model with behaviorbased
price discrimination (BBPD). An unilateral information exchange between the two
periods takes place in a subgame-perfect equilibrium. This exchange increases the ability
of the industry to price discriminate consumers according to their profiles and boosts the
profitability of BBPD at the expense of consumers.
Origin : Files produced by the author(s)
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