Information sharing, personalized pricing, and collusion
Stefano Colombo (),
Luigi Filippini and
Aldo Pignataro
Information Economics and Policy, 2024, vol. 66, issue C
Abstract:
We study collusion sustainability in an infinitely repeated game in which firms might price discriminate, by offering personalized prices for the share of consumers they have information about. We do not impose any restrictions to the distribution of consumers and the product characteristic space. In such a general framework we show that when firms share their personal information about consumers, collusion is more difficult to sustain. We also show that, for intermediate levels of the discount factor, an antitrust policy aiming to discourage joint profit maximization and to maximize the consumer surplus should allow information sharing between firms. Instead, a ban on information sharing is optimal only if firms have imperfect information about their own consumers.
Keywords: Information sharing; Collusion; Personalized prices (search for similar items in EconPapers)
JEL-codes: D43 L13 L41 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:
Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0167624523000173
Full text for ScienceDirect subscribers only
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:eee:iepoli:v:66:y:2024:i:c:s0167624523000173
DOI: 10.1016/j.infoecopol.2023.101032
Access Statistics for this article
Information Economics and Policy is currently edited by D. Waterman
More articles in Information Economics and Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().