discriminatory pricing. We show that our theory is largely consistent with observed evidence. This paper also provides some policy …

as in mobile telephony, where firms have near-perfect information on the proximity of customers but may have imperfect …

price discriminate between those customers who are sensitive to service characteristics and those who are not. Service … and thus intensifies competition. The reason is that the intensified competition for less sensitive customers enables … service providers to commit to a higher price for more sensitive customers, which leads to higher profits overall. This …