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Price discrimination with partial information: Does it pay off?

  • Esteves, Rosa-Branca

This paper investigates the profit effects of price discrimination when firms have partial information about consumer preferences. It shows that price discrimination can boost industry profit if firms have access to the right kind of information about consumer preferences while remaining ignorant of other relevant information.

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File URL: http://www.sciencedirect.com/science/article/B6V84-4WBC1K9-1/2/6b06024130d1741f7dd8592cc4dc6f67
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Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 105 (2009)
Issue (Month): 1 (October)
Pages: 28-31

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Handle: RePEc:eee:ecolet:v:105:y:2009:i:1:p:28-31
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolet

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  1. Thisse, J.-F. & Vives, X., 1987. "On the strategic choice of spatial price policy," CORE Discussion Papers 1987008, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. Yongmin Chen, 1997. "Paying Customers to Switch," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 6(4), pages 877-897, December.
  3. Drew Fudenberg & Jean Tirole, 2000. "Customer Poaching and Brand Switching," RAND Journal of Economics, The RAND Corporation, vol. 31(4), pages 634-657, Winter.
  4. Rosa Branca Esteves, 2008. "Price Discrimination with Partial Information: Does it pay off?," NIPE Working Papers 12/2008, NIPE - Universidade do Minho.
  5. Kenneth S. Corts, 1998. "Third-Degree Price Discrimination in Oligopoly: All-Out Competition and Strategic Commitment," RAND Journal of Economics, The RAND Corporation, vol. 29(2), pages 306-323, Summer.
  6. Boom, Anette, 2001. "On the Desirability of Compatibility with Product Selection," Journal of Industrial Economics, Wiley Blackwell, vol. 49(1), pages 85-96, March.
  7. Tabuchi, Takatoshi, 1994. "Two-stage two-dimensional spatial competition between two firms," Regional Science and Urban Economics, Elsevier, vol. 24(2), pages 207-227, April.
  8. Carmen Matutes & Pierre Regibeau, 1988. ""Mix and Match": Product Compatibility without Network Externalities," RAND Journal of Economics, The RAND Corporation, vol. 19(2), pages 221-234, Summer.
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