Price discrimination and targeted advertising: a welfare analysis

Rosa Esteves () and Paulo Guimaraes

No 4, NIMA Working Papers from Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho

Abstract: We present a monopolistic model of price discrimination by means of targeted informative advertising. Targeting is defined as the ability of the monopolistic to direct messages with differentiated contents to groups of buyers with different valuations for the good. We show that only if targeting is perfect will the monopolistic behave in a socially desirable way.

Keywords: informative advertising; targeting; price discrimination (search for similar items in EconPapers)
JEL-codes: D42 D83 (search for similar items in EconPapers)
Pages: 6 pages
Date: 2000-11
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Related works:
Journal Article: Price Discrimination and Targeted Advertising: A Welfare Analysis (2008)
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