Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/296837 
Year of Publication: 
2022
Series/Report no.: 
ISER Discussion Paper No. 1192
Publisher: 
Osaka University, Institute of Social and Economic Research (ISER), Osaka
Abstract: 
We discuss the effect of personalized pricing on profits and welfare in a Hotelling model in which consumers can simultaneously purchase from both firms. As the additional gain from the second purchase increases, personalized pricing is more likely to harm (resp., benefit) consumers (resp., firms). If the additional gain is interme- diate, personalized pricing improves consumer welfare and firms' profits, contrasting with the standard result: personalized pricing benefits consumers but harms firms. When firms can choose one of the pricing policies: uniform or personalized, both choose uniform (resp., personalized) pricing under some parameters (resp., in any case); multiple equilibria can co-exist.
Subjects: 
Personalized pricing
Multi-unit purchase
Hotelling model
JEL: 
L13
D43
Document Type: 
Working Paper

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