We present a monopolistic model of price discrimination by means of targeted informative advertising. Targeting is defined as the ability of the monopolistic to direct messages with differentiated contents to groups of buyers with different valuations for the good. We show that only if targeting is perfect will the monopolistic behave in a socially desirable way.
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Paper provided by Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho in its series Working Papers with number
4.
Length: 6 pages Date of creation: Nov 2000 Date of revision: Handle: RePEc:nim:nimawp:4/2000
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