Information provision and behaviour-based price discrimination
Journal article: 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).
Author(s)
Romain de Nijs
Journal
- Information Economics and Policy
Date of publication
- 2013
Keywords JEL
Keywords
- Price discrimination
- Informative advertising
- Mixed pricing
Pages
- 32-40
URL of the HAL notice
Version
- 1
Volume
- 25