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...

With behavior-based pricing (BBP), firms use customers' purchase history data to price discriminate between past customers and new customers. Prior research has examined BBP in a non-channel setting. In this paper, we investigate BBP in a channel setting in which manufacturers sell to customers...