Go to:
Logótipo
Comuta visibilidade da coluna esquerda
Você está em: Start > Publications > View > Behavior based price personalization under vertical product differentiation
Publication

Publications

Behavior based price personalization under vertical product differentiation

Title
Behavior based price personalization under vertical product differentiation
Type
Article in International Scientific Journal
Year
2021
Authors
Garella, P
(Author)
Other
The person does not belong to the institution. The person does not belong to the institution. The person does not belong to the institution. Without AUTHENTICUS Without ORCID
Laussel, D
(Author)
Other
The person does not belong to the institution. The person does not belong to the institution. The person does not belong to the institution. Without AUTHENTICUS Without ORCID
Joana Resende
(Author)
FEP
View Personal Page You do not have permissions to view the institutional email. Search for Participant Publications View Authenticus page Without ORCID
Journal
Serial No. Vol. 76 No. 102717
Pages: 1-21
ISSN: 0167-7187
Publisher: Elsevier
Other information
Authenticus ID: P-00T-NCD
Abstract (EN): We study price personalization in a two period duopoly with vertically differentiated products. In the second period, a firm not only knows the purchase history of all customers, as in standard Behavior Based Price Discrimination models, but it also collects detailed information on its old customers, using it to engage in price personalization. The analysis reveals that there exists a natural market for each firm, defined as the set of customers that cannot be poached by the rival in the second period. The equilibrium is unique, except when firms are ex-ante almost identical. In equilibrium, only the firm with the largest natural market poaches customers from the rival. This firm has highest profits but not necessarily the largest market share. Aggregate profits are lower than under uniform pricing. All consumers gain, total welfare is higher herein than under uniform pricing if firms' natural markets are sufficiently asymmetric. The low quality firm chooses the minimal quality level and a quality differential arises, though the exact choice for the high quality depends upon the cost specification.
Language: English
Type (Professor's evaluation): Scientific
No. of pages: 21
Documents
We could not find any documents associated to the publication.
Related Publications

Of the same journal

y Unilateral effects screens for partial horizontal acquisitions: The generalized HHI and GUPPI (2018)
Article in International Scientific Journal
Brito, D; Osorio, A; Ribeiro, R; Helder Vasconcelos
Welfare Decreasing Endogenous Mergers between Producers of Complementary Goods (2018)
Article in International Scientific Journal
Barros, PP; Brito, D; Helder Vasconcelos
The survival of new plants: Start-up conditions and post-entry evolution (1995)
Article in International Scientific Journal
Mata, J; Portugal, P; Paulo Guimaraes
Serial entrepreneurship, learning by doing and self-selection (2015)
Article in International Scientific Journal
Rocha, V; Anabela Carneiro; Varum, CA

See all (15)

Recommend this page Top
Copyright 1996-2025 © Faculdade de Direito da Universidade do Porto  I Terms and Conditions  I Acessibility  I Index A-Z
Page created on: 2025-07-26 at 00:37:09 | Privacy Policy | Personal Data Protection Policy | Whistleblowing