Skip to Main content Skip to Navigation
Preprints, Working Papers, ...

Behavior-Based Price Discrimination with endogenous data collection and strategic customer targeting

Antoine Dubus 1, 2, 3
Abstract : This article analyzes behavior-based price discrimination in a two-period competition framework where firms endogenously collect consumer data and strategically target past customers. When firms strategically target customers: (i) they price-discriminate high valuation customers; (ii) they charge a homogeneous price to low valuation customers, even when they have precise information on them. Strategic targeting questions the main classical results of the literature: in a symmetric equilibrium firms do not compete for customer information acquisition and there is no consumer poaching. Sufficiently asymmetric data collection costs can restore previous results of the literature, and we discuss their implications for firms' data strategies and competition in digital markets.
Document type :
Preprints, Working Papers, ...
Complete list of metadata

https://hal.archives-ouvertes.fr/hal-03269586
Contributor : Antoine Dubus <>
Submitted on : Thursday, June 24, 2021 - 10:46:46 AM
Last modification on : Tuesday, September 21, 2021 - 2:08:06 PM

File

BBPD_Strategic_Targeting.pdf
Files produced by the author(s)

Identifiers

  • HAL Id : hal-03269586, version 1

Collections

Citation

Antoine Dubus. Behavior-Based Price Discrimination with endogenous data collection and strategic customer targeting. 2021. ⟨hal-03269586⟩

Share

Metrics

Record views

230

Files downloads

105