This paper studies decisions by firms of whether to attempt "behavior-based" price discrimination in markets with switching costs by using a two-period duopoly model. When both firms commit themselves to a pricing policy and consumers are "sophisticated" and have rational expectations, there is a dominant strategy equilibrium with both firms engaging in uniform pricing. Both firms are better off in the uniform pricing equilibrium, compared with the discriminatory equilibrium.
|ジャーナル||Journal of Economics/ Zeitschrift fur Nationalokonomie|
|出版物ステータス||Published - 2009 9 1|
ASJC Scopus subject areas
- Business, Management and Accounting(all)
- Economics and Econometrics