Behavior-based pricing (BBP) refers to the practice in which firms collect consumers' purchase history data, recognize repeat and new consumers from the data, and offer them different prices. BBP is a prevalent practice for firms and a worldwide concern for consumers. Extant research has...

Problem definition: Firms heavily invest in big-data technologies to collect consumer data and infer consumer preferences for price discrimination. However, consumers can use technological devices to manipulate their data and fool firms to obtain better deals. We examine how a firm invests in...