Price customization and targeting in matching markets

A-Tier
Journal: RAND Journal of Economics
Year: 2024
Volume: 55
Issue: 2
Pages: 230-265

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 introduce a model of (platform‐mediated) many‐to‐many matching in which agents' preferences are both vertically and horizontally differentiated. We first show how the model can be used to derive the profit‐maximizing matching plans under customized pricing. We then investigate the implications for targeting and welfare of uniform pricing (be it explicitly mandated or induced by privacy regulation), preventing the platform from conditioning prices on agents' profiles. The model can be applied to study ad exchanges, online retailing, and media markets.

Technical Details

RePEc Handle
repec:bla:randje:v:55:y:2024:i:2:p:230-265
Journal Field
Industrial Organization
Author Count
2
Added to Database
2026-01-28