Consumer privacy and serial monopoly

V. Bhaskar and Nikita Roketskiy ()

RAND Journal of Economics, 2021, vol. 52, issue 4, 917-944

Abstract: We examine the implications of consumer privacy when preferences today depend upon past consumption choices, and consumers shop from different sellers in each period. Although consumers are ex ante identical, their initial consumption choices cannot be deterministic. Thus, ex post heterogeneity in preferences arises endogenously. Consumer privacy improves social welfare, consumer surplus and the profits of the second‐period seller, while reducing the profits of the first period seller, relative to the situation where consumption choices are observed by the later seller.

Date: 2021
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https://doi.org/10.1111/1756-2171.12396

Related works:
Working Paper: Consumer Privacy and Serial Monopoly (2019)
Working Paper: Consumer Privacy and Serial Monopoly (2019)
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