Behavior-based price discrimination and customer information sharing

摘要

This article investigates the incentives and the effects of information sharing among rivalfirms about the identities of their past customers in a two-period model with behaviorbasedprice discrimination (BBPD). An unilateral information exchange between the twoperiods takes place in a subgame-perfect equilibrium. This exchange increases the abilityof the industry to price discriminate consumers according to their profiles and boosts theprofitability of BBPD at the expense of consumers.