Imperfect behavior-based price discrimination
WitrynaIn many markets, firms can price discriminate between their own customers and their rivals' customers, charging one price to consumers who prefer their own product and another price to consumers who prefer a rival's product. We find that when demand is symmetric, charging a lower price to a rival's customers is always optimal. Witryna1 sty 2007 · It is not surprising, therefore, that such behavior-based price discrimination is a well-known strategy in marketing science. 40. As the examples suggest, the literature takes two approaches to modeling imperfect competition and purchase-history price discrimination.
Imperfect behavior-based price discrimination
Did you know?
The Canadian entertainment company, Cineplex, is a classic example of a firm using the price discrimination strategy. Depending on the age demographic, tickets for the same movie are sold at different prices. … Zobacz więcej Advantages of this pricing strategy can be viewed from the perspective of both the firm and the consumer: Zobacz więcej Consider a firm that charges a single price for an apple: $5. In such a case, it would lead to one sale and total revenue of $5: Now, consider a firm that is able to charge a different price to each customer. For example: 1. $5 … Zobacz więcej WitrynaWe also discuss consumer surplus implications of such behavior‐ and characteristic‐based price discrimination, and we show that the impact of price discrimination depends on both the consumer type and the level of consumers’ heterogeneity. ... "Imperfect Behavior‐Based Price Discrimination," Journal of …
WitrynaWhen a firm is able to recognize customers with different purchasing histories, it may send them targeted advertisements with different prices. We show that in comparison to no discrimination, firms reduce their advertising efforts, charge higher first period prices and lower second period prices. Witryna6 gru 2024 · Firms may be able to price discriminate based on consumers’ preferences. We assume that the firms are not aware of the purchase history of the consumers, …
WitrynaWe analyze the sustainability of tacit collusion in a setting in which horizontally differentiated firms can price discriminate based on private, imperfect information. … Witryna6 gru 2024 · In competitive markets, Fudenberg and Tirole ( 2000) and Villas-Boas ( 1999) show that price discrimination based on past purchase information intensifies competition, and leads to a prisoner’s dilemma case, resulting into lower profits than uniform pricing.
Witryna1 cze 2014 · This form of price discrimination, termed behavior-based price discrimination (henceforth BBPD), sometimes also called price discrimination based on purchase history or dynamic pricing, is widely observed in many markets.
WitrynaAbstract. We study a model of behavior-based price discrimination where asymmetric firms can agree to share customer information that can be used for personalized … sol math testsWitryna20 lut 2024 · They argue that online behavioural discrimination will differ from the price discrimination we have seen in the retail world in three important respects: first, big data allow the shift from third-degree, imperfect price discrimination to near perfect price discrimination; second, sellers can use big data to target consumers with the right … sol mate sunscreen spf 50Witryna13 sie 2024 · We have studied spatial competition in a model of behavior-based price discrimination, as in Fudenberg and Tirole . We find that the static Hotelling outcome … sol math 7th grade practiceWitryna1 sty 2009 · Imperfect Behavior-Based Price Discrimination. Article. Dec 2015; J ECON MANAGE STRAT; Stefano Colombo; In this article, we develop a model … solmat mathaWitryna26 sty 2024 · Online price discrimination (OPD) or personalized pricing has triggered many debates in the existing literature, due to its potential adverse effects on (trust in) … sol math 7th gradeWitryna1 cze 2014 · This form of price discrimination, termed behavior-based price discrimination (henceforth BBPD), sometimes also called price discrimination … sol math 6th gradeWitryna10 gru 2010 · This paper highlights two perils of behavior-based personalization in competitive markets. First, although purchase histories reveal consumer preferences, competitive exploitation of such information damages differentiation, similar to the classic finding that behavior-based price discrimination intensifies price competition. sol math practice