Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/230484
Authors: 
Choe, Chongwoo
Matsushima, Noriaki
Year of Publication: 
2020
Series/Report no.: 
ISER Discussion Paper No. 1079
Abstract: 
We study a two-period model of behavior-based price discrimination in Fudenberg and Tirole (2000) but allow firms to make product choice in the first period. We show that the only possible equilibrium involves maximal differentiation. This is in contrast to Choe et al. (2018) where equilibrium features less than maximal differ- entiation when competition is in personalized pricing. Thus, our result highlights an important interplay between the type of price competition and product choice.
Subjects: 
Behavior-based price discrimination
spatial competition
JEL: 
D43
L13
Document Type: 
Working Paper

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