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.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal International Journal of the Economics of Business.
Volume (Year): 12 (2005)
Issue (Month): 2 ()
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Web page: http://www.tandfonline.com/CIJB20
Other versions of this item:
- 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.
- 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.
- D42 - Microeconomics - - Market Structure and Pricing - - - Monopoly
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- 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.:
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