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DYNAMIC PRICE DISCRIMINATION WITH ASYMMETRIC FIRMS*
2008
Journal of Industrial Economics
This paper considers variants of a dynamic duopoly model where one ...rm has a stronger market position than its competitor. Consumers'past purchases may reveal their di¤erent valuations due to preference diversity and possibly also to the cost of switching suppliers. Price discrimination based on purchase histories tends to bene...t consumers if it does not cause the weaker ...rm to exit; otherwise it can harm consumers. The e¤ect of price discrimination also depends on ...rms' cost
doi:10.1111/j.1467-6451.2008.00362.x
fatcat:7cxz5excr5ezfbppwg75c4qidq