Online Privacy and Price Discrimination July , 2010
نویسندگان
چکیده
When a firm is able to recognize its previous customers, it may use information about their purchase histories to price discriminate. We analyze a model with a monopolist and a continuum of heterogeneous consumers, where consumers are able to maintain their anonymity and avoid being identified as past customers, possibly at an (exogenous) cost. When consumers can costlessly maintain their anonymity, they all individually choose to do so, which paradoxically results in the highest profit for the firm. Increasing the cost of anonymity can benefit consumers, but only up to a point, after which the effect is reversed.
منابع مشابه
Price Discrimination, Privacy Technologies, and User Acceptance
We discuss the relations between welfare enhancing price discrimination and privacy enhancing technologies, and the possible drivers of consumers’ and merchants’ acceptance of those technologies.
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