Would You Like to be a Prosumer? Information Revelation, Personalization and Price Discrimination in Electronic Markets
AbstractElectronic commerce and flexible manufacturing allow personalization of initially standardized products at low cost. Will customers provide the information necessary for personalization? Assuming that a consumer can control the amount of information revealed, we analyze how her decision interacts with the pricing strategy of a monopolist who may abuse the information to obtain a larger share of total surplus. We consider two scenarios, one where consumers have different tastes but identical willingness to pay and another with high and low valuation customers. In both cases full revelation may only result if the monopolist can commit to a maximum price before consumers decide about disclosure.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal International Journal of the Economics of Business.
Volume (Year): 12 (2005)
Issue (Month): 2 ()
Contact details of provider:
Web page: http://www.tandfonline.com/CIJB20
Other versions of this item:
- Martin Bandulet & Karl Morasch, 2003. "Would You Like to Be a Prosumer? Information Revelation, Personalization and Price Discrimination in Electronic Markets," Discussion Paper Series 242, Universitaet Augsburg, Institute for Economics.
- Morasch, Karl & Bandulet, Martin, 2003. "Would you like to be a prosumer? Information revelation, personalization and price discrimination in electronic markets," Working Papers in Economics 2003,4, Universität der Bundeswehr München, Economic Research Group.
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- D42 - Microeconomics - - Market Structure and Pricing - - - Monopoly
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- J. Yannis Bakos, 1997. "Reducing Buyer Search Costs: Implications for Electronic Marketplaces," Management Science, INFORMS, vol. 43(12), pages 1676-1692, December.
- Alessandro Acquisti & Hal R. Varian, 2002.
"Contidioning Prices on Purchase History,"
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.