Behavior - based pricing with experience goods

Résumé

We consider a two-period model in which duopolists sell experience goods and practice behavior-based price discrimination (BBPD). We give general conditions for when firms should offer a lower price to existing customers (`pay-to-stay') or to new customers (`pay-to-switch'). We also demonstrate that unlike previous results, BBPD may intensify competition in the first period but weaken it in the second.

Référence

Romain De Nijs et Andrew Rhodes, « Behavior - based pricing with experience goods », Economics Letters, Elsevier, vol. 118, n° 1, janvier 2013, p. 155–158.