Personalized Pricing When Consumers Can Purchase Multiple Items

A-Tier
Journal: Journal of Industrial Economics
Year: 2024
Volume: 72
Issue: 4
Pages: 1507-1524

Authors (2)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study the impact of competitive personalized pricing in a Hotelling duopoly model where consumers can purchase from both firms. We show that the impact crucially depends on the magnitude of the additional utility from consuming the second product. Compared with uniform pricing, personalized pricing benefits both consumers and firms when the additional utility is moderate; but it harms consumers while benefiting firms when the additional utility is large. These results contrast with the existing research on competitive personalized pricing, which assumes that consumers purchase one product only.

Technical Details

RePEc Handle
repec:bla:jindec:v:72:y:2024:i:4:p:1507-1524
Journal Field
Industrial Organization
Author Count
2
Added to Database
2026-01-25