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Heinrich-Heine-Universität Düsseldorf >
Düsseldorf Institute for Competition Economics (DICE), University of Düsseldorf >
DICE Discussion Paper, Düsseldorf Institute for Competition Economics (DICE) >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/59580
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| Title: | | Targeted pricing and customer data sharing among rivals  |
| Authors: | | Jentzsch, Nicola Sapi, Geza Suleymanova, Irina |
| Issue Date: | | 2012 |
| Series/Report no.: | | DICE Discussion Paper 60 |
| Abstract: | | It is increasingly observable that competitors in different industries share customer data, which can be used for targeted pricing. We propose a modified Hotelling model with two-dimensional consumer heterogeneity to analyze the incentives for such sharing and its ensuing welfare effects. We show that these incentives depend on the type of customer data and on consumer heterogeneity in the strength of brand preferences. Only data on consumer transportation cost parameters is shared. The incentives to do so are stronger if consumers are relatively homogeneous. Customer data sharing is most likely to be detrimental to consumer surplus, while the effect on social welfare can be positive. |
| Subjects: | | Customer Data Sharing Price Discrimination |
| JEL: | | D43 L13 L15 O30 |
| ISBN: | | 978-3-86304-059-8 |
| Document Type: | | Working Paper |
| Appears in Collections: | | DICE Discussion Paper, Düsseldorf Institute for Competition Economics (DICE)
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