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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.
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https://hal-polytechnique.archives-ouvertes.fr/hal-01226250
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Submitted on : Monday, November 9, 2015 - 10:49:44 AM
Last modification on : Friday, April 29, 2022 - 10:13:03 AM
Long-term archiving on: : Wednesday, February 10, 2016 - 10:16:46 AM

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  • HAL Id : hal-01226250, version 1

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Romain de Nijs. Behavior-based price discrimination and customer information sharing. 2015. ⟨hal-01226250⟩

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