The interaction between personalized pricing and multi-item purchases: A random utility model approach

Qiuyu Lu and Noriaki Matsushima

Economics Letters, 2025, vol. 247, issue C

Abstract: We construct a duopolistic random utility model to investigate the effect of personalized pricing on consumers and firms, allowing consumers to purchase from both firms. Under an exponential distribution, personalized pricing always benefits firms but can either benefit or harm consumer welfare.

Keywords: Personalized pricing; Multi-item purchases; Random utility model (search for similar items in EconPapers)
JEL-codes: D43 L13 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:247:y:2025:i:c:s0165176524005974

DOI: 10.1016/j.econlet.2024.112113

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