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This article studies the dynamic effects of behaviour-base price discrimination and customer recognition in a duopolistic market where the distribution of consumers' preferences is discrete. In the static and firs-period equilibrium firms choose prices with mixed strategies. When price...
Persistent link: https://www.econbiz.de/10005704680
This article is a first loock at the dynamic effects of customer poaching in homogeneous product markets, where firms need to invest in advertising to generate awareness. When a firm can recognize customers with different past purchasing histories, it may send them targeted advertisements with...
Persistent link: https://www.econbiz.de/10005771601
Economists have long been interested in understanding the profit, consumer surplus and welfare effects of an ancient marketing strategy: Price Discrimination. While it is not new that firms try frequently to segment customers in order to price discriminate, what has dramatically changed, with...
Persistent link: https://www.econbiz.de/10005771617
This paper investigates the profit effects of price discrimination when firms have partial information about consumer preferences. Using a two-dimensional model of product differentiation it shows that price discrimination can boost industriy profit if firms have acess to the right kind of...
Persistent link: https://www.econbiz.de/10005771623
This paper is a first step in investigating the competitive and welfare effects of behaviourbased price discrimination (BBPD) in markets where firms have information to employ retention strategies as an attempt to raise barriers to switching. We focus on retention activity in the form of a...
Persistent link: https://www.econbiz.de/10010631516
This paper investigates the effects of price discrimination by means of targeted advertising in a duopolistic market where the distribution of consumers' preferences is discrete and where advertising plays two major roles. It is used by firms as a way to transmit relevant information to...
Persistent link: https://www.econbiz.de/10008873491
This paper studies the interaction between horizontal mergers and price discrimination by endogenizing the merger formation process in the context of a repeated purchase model with two periods and three firms wherein firms may engage in Behaviour-Based Price Discrimination (BBPD). From a merger...
Persistent link: https://www.econbiz.de/10008565407
This paper investigates the effects of price discrimination by means of targeted advertising in a duopolistic market in which advertising plays two major roles. It transmits relevant information to otherwise uninformed consumers and it acts as a price discrimination device. We look at the...
Persistent link: https://www.econbiz.de/10010897805
This paper provides useful implications for managers and marketing practitioners using data on consumers' purchase history for price discrimination purposes. It is also useful for competition policy agencies and consumer advocates. It highlights that the shape of preferences plays an important...
Persistent link: https://www.econbiz.de/10012855659
This paper assesses the welfare e⁄ects of rms ability to use data for group and personalized pricing in markets with unit ( q = 1) and multi-unit demand consumers ( q 1). The disutility cost of not consuming the ideal good is a function of units purchased and can increase at a decreasing rate...
Persistent link: https://www.econbiz.de/10014076531