We demonstrate the "curse of knowledge" when a monopolist can recognize different consumer groups through their purchase histories, which are influenced by the firm's dynamic pricing policies. Under the Markov-perfect equilibrium, after each commitment period, the firm offers a new introductory...

This paper demonstrates that it is possible to construct accurate pictures of firm revenue, growth, geographic dispersion, and customer base characteristics using an increasingly accessible class of consumer financial transaction data. We develop two new measures which characterize firms'...