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endogenous and they depend on prices, acting as a coordination device among consumers. The model is able to account for …
Persistent link: https://www.econbiz.de/10014214940
. Will customers provide the information necessary for personalization? Assuming that a consumer can control the amount of … information revealed, we analyze how his decision interacts with the pricing strategy of a monopolist who may abuse the … information to obtain a larger share of total surplus. We consider two scenarios, one where consumers have different tastes but …
Persistent link: https://www.econbiz.de/10010300399
. Will customers provide the information necessary for personalization? Assuming that a consumer can control the amount of … information revealed, we analyse how his decision interacts with the pricing strategy of a monopolist who may abuse the … information to obtain a larger share of total surplus. We consider two scenarios, one where consumers have different tastes but …
Persistent link: https://www.econbiz.de/10010270920
. Will customers provide the information necessary for personalization? Assuming that a consumer can control the amount of … information revealed, we analyze how his decision interacts with the pricing strategy of a monopolist who may abuse the … information to obtain a larger share of total surplus. We consider two scenarios, one where consumers have different tastes but …
Persistent link: https://www.econbiz.de/10010509329
's incentives to extract information rent. By reducing the costs of information acquisition or forcing firms to supply consumers … with the respective information about past usage, policy can further improve welfare, as contracts become more efficient …
Persistent link: https://www.econbiz.de/10011489927
efficient purchasing decisions (given their private information), and in the second step the monopoly extracts the surplus from …
Persistent link: https://www.econbiz.de/10001601438
A monopolist uses prices as an instrument to influence consumers' belief about the unknown quality of its product. Consumers observe prices and sales in earlier periods to learn about the product. Every period they decide whether to consume the product or to wait for a lower price in future. We...
Persistent link: https://www.econbiz.de/10013065803
Consumer reviews may have perverse effects, including delays of adoption in new products of unknown quality when consumers are boundedly rational. When consumers fail to take into account that past reviewers self-select to purchases, a monopolist may manipulate the posterior beliefs of consumers...
Persistent link: https://www.econbiz.de/10012957432
I study the welfare and price implications of consumer privacy. A consumer discloses information to a multi … from accurate recommendations, the seller may use the information to price discriminate. I show that the seller prefers to … commit to not use information for pricing in order to encourage information disclosure. However, this commitment hurts the …
Persistent link: https://www.econbiz.de/10012900118
Rapid technological developments in online markets fundamentally change the relationship between consumers and sellers. Online platforms can now easily gather data about the consumer and his search behavior, that allow for price discrimination. Therefore the consumers' product search becomes a...
Persistent link: https://www.econbiz.de/10012900926