Behavior - based pricing with experience goods

De Nijs, Romain and Rhodes, Andrew (2013) Behavior - based pricing with experience goods. Economics Letters, vol. 118 (n° 1). pp. 155-158.

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Official URL: http://tse-fr.eu/pub/27601

Abstract

We consider a two-period model in which duopolists sell experience goods and practice behavior-based price discrimination (BBPD). We give general conditions for when firms should offer a lower price to existing customers (`pay-to-stay') or to new customers (`pay-to-switch'). We also demonstrate that unlike previous results, BBPD may intensify competition in the first period but weaken it in the second.

Item Type: Article
Language: English
Date: January 2013
Refereed: Yes
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Site: UT1
Date Deposited: 09 Jul 2014 17:38
Last Modified: 07 Mar 2018 13:22
OAI ID: oai:tse-fr.eu:27601
URI: http://publications.ut-capitole.fr/id/eprint/15730

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