We study the impact of behaviour-based price discrimination on the incentive of the firms to differentiate their products. We consider both ‘standard’ and ‘extreme’ behaviour-based price dis- crimination: the latter always reduces the incentive to differentiate with respect to uniform pricing, while the former fosters differentiation if the consumers are sufficiently forward-looking and/or the firms are sufficiently myopic.
Colombo, S., Does behaviour-based price discrimination foster firms differentiation?, <<BULLETIN OF ECONOMIC RESEARCH>>, 2016; (68): 111-122. [doi:10.1111/boer.12083] [http://hdl.handle.net/10807/91185]
Does behaviour-based price discrimination foster firms differentiation?
Colombo, Stefano
2016
Abstract
We study the impact of behaviour-based price discrimination on the incentive of the firms to differentiate their products. We consider both ‘standard’ and ‘extreme’ behaviour-based price dis- crimination: the latter always reduces the incentive to differentiate with respect to uniform pricing, while the former fosters differentiation if the consumers are sufficiently forward-looking and/or the firms are sufficiently myopic.
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