We develop an analytical framework to investigate the competitiveimplications of personalized pricing (PP), whereby firms chargedifferent prices to different consumers based on their willingness topay. We embed PP in a model of vertical product differentiation and showhow it affects firms’...

We develop an analytical framework to investigate the competitive implications of personalized pricing technologies (PP). These technologies enable first-degree price discrimination: firms charge different prices to different consumers, based on their willingness to pay. We first show that, even...