Firms are increasingly using technology to enable targeted, or "personalized" pricing strategies. In settings where prices are transparent to all consumers, however, there is the potential that inter-personal price differences will be perceived as inherently unfair. In response, firms may...

Switching costs are generally regarded as anti-competitive as firms can raise prices to "locked-in" consumers, at least up to the cost of switching to a lower-priced alternative. However, there is some evidence, both theoretical and empirical, that tends to show the opposite. Namely, suppliers,...

Consumer-product manufacturers, and retailers that sell their products, often sell slightly differentiated items for reasons other than appealing to heterogeneous tastes — different sizes of a popular brand, or different flavors in a common product line for instance. We argue that this...