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Price Discrimination with Partial Information: Does it pay off?

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Author Info
Rosa Branca Esteves () (Universidade do Minho - NIPE)

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Abstract

This paper investigates the profit effects of price discrimination when firms have partial information about consumer preferences. Using a two-dimensional model of product differentiation it shows that price discrimination can boost industriy profit if firms have acess to the right kind of information about consumer preferences while remaining ignorant of othet relevant information.

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File URL: http://www3.eeg.uminho.pt/economia/nipe/docs/2008/NIPE_WP_12_2008.PDF
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Paper provided by NIPE - Universidade do Minho in its series NIPE Working Papers with number 12/2008.

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Date of creation: 2008
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Handle: RePEc:nip:nipewp:12/2008

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Postal: Núcleo de Investigação em Políticas Económicas, Escola de Economia e Gestão, Universidade do Minho, P-4710-057 Braga, Portugal
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This paper has been announced in the following NEP Reports: Cited by:
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  1. Natália P. Monteiro & Paulo Bastos, 2009. "Managers and wage policies," NIPE Working Papers 2/2009, NIPE - Universidade do Minho. [Downloadable!]
  2. Fernando Alexandre & Miguel Portela & Carla Sá, 2008. "Admission conditions and graduates' employability," NIPE Working Papers 16/2008, NIPE - Universidade do Minho. [Downloadable!]
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