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 discrimination: 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.
机构:
Indira Gandhi Inst Dev Res IGIDR, Film City Rd Santosh Nagar Goregaon East, Mumbai 400065, IndiaIndira Gandhi Inst Dev Res IGIDR, Film City Rd Santosh Nagar Goregaon East, Mumbai 400065, India