Multi-channel retailers face a crucial decision of whether to charge the same price online and offline. In a competitive environment with two multi-channel retailers, the pricing strategies are complicated by the heterogeneity of consumers and their cross-channel/cross-retailer purchasing...

We investigate how firms' incentives to acquire customer data for targeted offers depend on its quality. A two-dimensional Hotelling model is proposed where consumers are heterogeneous both with respect to their locations and transportation cost parameters (flexibility). Firms have perfect data...