Consumer privacy and targeted pricing with stochastic valuations

@inproceedings{Mishra2014ConsumerPA,
  title={Consumer privacy and targeted pricing with stochastic valuations},
  author={Shreemoy Mishra},
  year={2014}
}
I study the market for consumer information. Firms cannot commit to privacy, so buyers anticipate disclosure of purchase history for targeted pricing. In the literature, strategic rejections of informative offers make purchase data worthless, which is paradoxical given the large investments in data analytics. I show that buyers' uncertainty regarding future preferences allows full separation of types, leading to valuable purchase data. Buyers of any given type are assumed to share similar… CONTINUE READING

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