Information provision and behaviour-based price discrimination

@article{Nijs2013InformationPA,
  title={Information provision and behaviour-based price discrimination},
  author={Romain De Nijs},
  journal={Information Economics and Policy},
  year={2013},
  volume={25},
  pages={32-40}
}
This article examines a model wherein firms first advertise their existence to consumers and, in the two following periods, compete with uniform pricing and then with behaviour-based price discrimination. I show that allowing firms to price discriminate can restore symmetry in equilibrium advertising decisions. I also establish that price discrimination increases (resp. decreases) profits and total welfare but hurts (resp. benefits) consumers when the advertising cost is high (resp. low). 2013… CONTINUE READING

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Information Economics and Policy

De Nijs
Information Economics and Policy • 2013

Chioveanu

See Fershtman, Muller
Chioveanu • 1993

6 The equilibrium is in mixed strategies with continuous support so that the probability of a tie is zero

6 The equilibrium is in mixed strategies with continuous support so that the probability of a tie is zero

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