Choe, Chongwoo Matsushima, Noriaki Tremblay, Mark J.
Year of Publication:
ISER Discussion Paper No. 1083
We study a model of behavior-based price discrimination where firms can agree to share customer information that can be used for personalized pricing. We show that firms are better off sharing customer information as it softens up-front competition when they gather information, consumers are worse off as a result, but total surplus can increase thanks to the improved quality of matching between firms and consumers.
Information sharing behavior-based price discrimination personalized pricing