Personalized Pricing and Competition

Andrew Rhodes and Jidong Zhou ()
Additional contact information
Andrew Rhodes: Toulouse School of Economics
Jidong Zhou: Cowles Foundation, Yale University School of Management, https://som.yale.edu/faculty/jidong-zhou

No 2329R, Cowles Foundation Discussion Papers from Cowles Foundation for Research in Economics, Yale University

Abstract: We study personalized pricing in a general oligopoly model. When the market structure is fixed, the impact of personalized pricing relative to uniform pricing hinges on the degree of market coverage. If market conditions are such that coverage is high, personalized pricing harms firms and benefits consumers, whereas the opposite is true if coverage is low. However, when the market structure is endogenous, personalized pricing benefits consumers because it induces socially optimal firm entry. Finally, when only some firms have data to personalize prices, consumers can be worse off compared to when either all or no firms personalize prices.

Keywords: personalized pricing; competition; price discrimination; consumer data (search for similar items in EconPapers)
Pages: 58 pages
Date: 2022-11
References: Add references at CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://cowles.yale.edu/sites/default/files/files/pub/d20/d2329-r.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://cowles.yale.edu/sites/default/files/files/pub/d20/d2329-r.pdf [301 Moved Permanently]--> https://cowles.yale.edu/sites/default/files/files/pub/d20/d2329-r.pdf)

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:cwl:cwldpp:2329r

Ordering information: This working paper can be ordered from
Cowles Foundation, Yale University, Box 208281, New Haven, CT 06520-8281 USA
The price is None.

Access Statistics for this paper

More papers in Cowles Foundation Discussion Papers from Cowles Foundation for Research in Economics, Yale University Yale University, Box 208281, New Haven, CT 06520-8281 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Brittany Ladd ().