Behavior?based price discrimination with nonuniform distribution of consumer preferences

نویسندگان

چکیده

Existing theories of competition with behavior-based price discrimination (BBPD, also known as based on purchase history), typically assume that consumer valuations are distributed uniformly. This assumption implies the availability BBPD creates a prisoner's dilemma in which firms worse off and consumers better equilibrium, relative to uniform pricing. In this paper, we consider wider class distributions show profit welfare results change qualitatively. When sufficiently massed at center market (e.g., triangular distribution), boosts industry profits expense consumers. Otherwise, usual findings prevail. Our highlight how assumptions density play decisive role pricing outcomes.

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ژورنال

عنوان ژورنال: Journal of Economics and Management Strategy

سال: 2021

ISSN: ['1058-6407', '1530-9134']

DOI: https://doi.org/10.1111/jems.12466