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Behavior-based price discrimination and customer information sharing

Author

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  • Romain de Nijs

    (X - École polytechnique, PSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

This article investigates the incentives and the effects of information sharing among rival firms about the identities of their past customers in a two-period model with behaviorbased price discrimination (BBPD). An unilateral information exchange between the two periods takes place in a subgame-perfect equilibrium. This exchange increases the ability of the industry to price discriminate consumers according to their profiles and boosts the profitability of BBPD at the expense of consumers.

Suggested Citation

  • Romain de Nijs, 2015. "Behavior-based price discrimination and customer information sharing," PSE Working Papers hal-01226250, HAL.
    • Handle: RePEc:hal:psewpa:hal-01226250
    Note: View the original document on HAL open archive server: https://polytechnique.hal.science/hal-01226250
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    File URL: https://polytechnique.hal.science/hal-01226250/document
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    References listed on IDEAS

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    Keywords

    Price discrimination; Dynamic pricing; Privacy; Information sharing;
    All these keywords.

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