Behavior-Based Price Discrimination and Product Choice
Behavior-Based Price Discrimination and Product Choice
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DOI:
10.1007/s11151-020-09783-x
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发表时间:
2020-03
影响因子:
1.1
通讯作者:
Chongwoo Choe;Noriaki Matsushima
中科院分区:
文献类型:
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作者:
Chongwoo Choe;Noriaki Matsushima
We study a two-period model of behavior-based price discrimination, as in Fudenberg and Tirole (RAND J Econ 31(4):634–657, 2000), but we allow firms to make their product choices in the first period. We show that the only possible equilibrium involves maximal differentiation. This is in contrast to Choe et al. (Manag Sci 64(12):5669–5687, 2018), where equilibrium features less-than-maximal differentiation when competition is in personalized pricing. Thus, our result highlights an important interplay between the type of price competition and product choice.