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TitleBehavior-based price discrimination in a multi-dimensional preferences market
Author(s)Esteves, Rosa Branca
Qihong Liu
Jie Shuai
Competitive price discrimination
Customer recognition
Issue date2016
PublisherUniversidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE)
Abstract(s)This article is a first look at the profit and welfare effects of behavior-based price discrimination in a two-period multi-dimensional preferences model. Compared to one-dimensional models, we show that firms compete less aggressively in both periods and so new results are obtained. Specifically, under forward looking consumers and two symmetric dimensions, BBPD boosts industry profits at the expense of consumers. However, we show that the standard one-dimensional welfare results can prevail under asymmetric dimensions and myopic consumers.
TypeWorking paper
DescriptionNIPE WP 04/ 2016
Publisher version
AccessOpen access
Appears in Collections:NIPE - Documentos de Trabalho

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