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When firms are able to record the purchase history information and
recognize their customers, they are facilitated to engage in "behaviour-based
price discrimination"(BBPD) where they can offer different prices to consumers
with different purchase history. It is typically analyzed in a unit demand framework.
This paper developed a model with multiple unit purchase with diminishing marginal
... read moreutility. We investigated the profitability of monopolist sellers with BBPD in such
context. And we found that the proportion of high-value type consumers play a big
role in it, under certain conditions, when the proportion of high type consumers
are large enough. BBPD can be profitable.
Thesis (M.S.)--Tufts University, 2019.
Submitted to the Dept. of Economics.
Advisors: Silke Frobes, and Lynne Pepall.
Committee: Lynn Pepall.
Keyword: Economic theory.read less
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