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Behaviour-based price discrimination with elastic demand

Year: 2012
Type: report
Abstract: Behaviour-based price discrimination is typically analysed in a framework characterised by inelastic demand. This paper provides a first assessment of the role of elastic demand on the competitive ef-fects of behaviour-based price discrimination. Our results show that if demand is elastic enough, behaviour-based price discrimination leads to demand expansion which has a positive effect on overall welfare. JEL: D43, L13.
Language: English
Subfield: Marketing
Open Access status: green
OpenAlex ID: W181894537
Cites: 30
Cited by: 13
Related to: 10