Personalized Pricing When Consumers Can Purchase Multiple Items

Lu, Qiuyu; Matsushima, Noriaki

Institute of Social and Economic Research Discussion Papers, 2022, 1192, 1-29

Number of Access:351（2025-07-24 04:37 Counts）

Identifier to cite or link to this item: https://hdl.handle.net/11094/89377

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Title
Personalized Pricing When Consumers Can Purchase Multiple Items
Creator
CreatorName
Lu, Qiuyu
NRID
1000080334879 1000080334879
ORCID
0000-0002-7865-3875 0000-0002-7865-3875
researchmap permalink
read0116301 read0116301
Scopus Author ID
7005645778 7005645778
CreatorName
Matsushima, Noriaki
Subject
Personalized pricing
Multi-unit purchase
Hotelling model
Abstract
We discuss the effect of personalized pricing on profits and welfare in a Hotelling model in which consumers can simultaneously purchase from both firms. As the additional gain from the second purchase increases, personalized pricing is more likely to harm (resp., benefit) consumers (resp., firms). If the additional gain is intermediate, personalized pricing improves consumer welfare and firms’ profits, contrasting with the standard result: personalized pricing benefits consumers but harms firms. When firms can choose one of the pricing policies: uniform or personalized, both choose uniform (resp., personalized) pricing under some parameters (resp., in any case); multiple equilibria can co-exist.
Publisher
The Institute of Social and Economic Research, Osaka University
Source Title
Institute of Social and Economic Research Discussion Papers
Volume (Issue)
1192
Page
1-29
Date of Issued
2022-10
Language
English
Handle URL
https://hdl.handle.net/11094/89377
PISSN
0473453X
eISSN
24350982
Relation.references
URI
https://www.iser.osaka-u.ac.jp/static/resources/docs/dp/2022/DP1192.pdf
Access Rights
metadata only access
Category
ディスカッション／ワーキング・ペーパー DP/WP
Institute of Social and Economic Research Discussion Papers