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This paper analyzes optimal pricing for information goods under incomplete information, when both unlimited … implies that the optimal pricing strategy for information goods is almost never fully revealing. Moreover, it is proved that … instance, in nascent information markets, firms may profit from low fixed-fee penetration pricing, but as these markets mature …
Persistent link: https://www.econbiz.de/10014120562
'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
Online platforms provide search tools that help consumers to get betterfitting product offers. But this technology makes consumer search behavior also easily traceable for the platform and allows for real-time price discrimination. Consumers face a trade-off: Search intensely and receive better...
Persistent link: https://www.econbiz.de/10011737481
We solve for the optimal mechanism for selling two goods when the buyer's demand characteristics are unobservable. In the case of substitutable goods, the seller has an incentive to offer lotteries over goods in order to charge the buyers with large differences in the valuations a higher price...
Persistent link: https://www.econbiz.de/10010291986
We extend the 'no-haggling' result of Riley and Zeckhauser (1983) to the class of linear multiproduct monopoly problems when the buyer's valuations are smoothly distributed. In particular we show that there is no loss for the seller in optimizing over mechanisms such that all allocations belong...
Persistent link: https://www.econbiz.de/10010292016
. 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
Online platforms provide search tools that help consumers to get better-fitting product offers. But this technology makes consumer search behavior also easily traceable and allows for real-time price discrimination. Consumers face a trade-off: Search intensely and receive a better fit at a...
Persistent link: https://www.econbiz.de/10011892015
. 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
'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/10011441809
We study a tractable two-dimensional model of price discrimination. Consumers combine a rigid with a more flexible choice, such as choosing the location of a house and its quality or size. We show that the optimal pricing scheme involves no bundling if consumer types are affiliated. Conversely,...
Persistent link: https://www.econbiz.de/10010520623