【Theory webinar】Purchase History and Product Personalization

  • 研討會日期 : 2021-10-12
  • 時間 : 09:00
  • 主講人 : Professor Laura Doval
  • 地點 : online
  • 演講者簡介 : Professor Doval received her Ph.D. in Economic from Northwestern University in 2016. She is currently an Assistant Professor at Columbia Business School. Her research interests are in Information Economics, Mechanism Design, and Market Design.
  • 演講摘要 : Product personalization opens the door to price discrimination. A rich product line allows for higher consumer satisfaction, but the mere choice of a product carries valuable information about the consumer that the firm can leverage for price discrimination. Controlling the degree of product personalization provides the firm with an additional tool to curb ratcheting forces arising from consumers’ awareness of being price discriminated. Indeed, a firm’s inability to not engage in price discrimination introduces a novel distortion: The firm offers a subset of the products that it would offer if, instead, the firm could commit to not price discriminate. Doing so gives commitment power to the firm: By ‘pooling’ consumers with different tastes to the same variety the firm commits not to learn their tastes.