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model of horizontal product differentiation, firms use consumer information to price discriminate. I contrast a full privacy … and a no privacy benchmark with intermediate regimes in which the firms target consumers only partially. No privacy is … traditionally detrimental to industry profits. Instead, I show that with partial privacy firms are always better-off with price …
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In a market where consumers choose between payment options and firms compete with products and prices, we show that payment data drives the formation of a market monopoly. A data-sharing policy can successfully restore and maintain a competitive market, but often at the expense of both...
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