Welfare Impacts of Behavior-Based Price Discrimination with Asymmetric Firms

• 발행기관: 강원대학교 경영경제연구소
• 저자명: Hoe-Sang Chung
• 간행물 정보: 『아태비즈니스연구』제11권 제1호, 17~26쪽, 전체 10쪽
• 주제분류: 인문학 > 문학
• 파일형태: PDF
• 발행일자: 2020.03.30

영문 초록

Purpose - This paper studies the welfare impacts of behavior-based price discrimination(BBPD) when firms are asymmetric in quality improvement costs. Design/methodology/approach - To this end, we consider a differentiated duopoly model with an inherited market share, where firms first make quality decisions and then compete in prices according to the pricing scheme, namely, uniform pricing or BBPD. Findings - We show that BBPD increases social welfare relative to uniform pricing if the firms’ cost gap is large enough. This is because BBPD induces more consumers to buy a high-quality product than under uniform pricing, and because a low-cost firm’s profit loss from BBPD decreases as the cost difference increases. Research implications or Originality - Our analysis offers policy implications for markets where BBPD raises antitrust concerns, and quality competition prevails.

목차

Ⅰ. Introduction

Ⅱ. The Model

Ⅲ. Analysis

Ⅳ. Conclusion

References

키워드

Difference in Quality Costs Behavior-Based Price Discrimination Quality Choice Social Welfare