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Consumer Privacy and Serial Monopoly

Bhaskar, V; Roketskiy, N; (2021) Consumer Privacy and Serial Monopoly. The RAND Journal of Economics , 52 (4) pp. 917-944. 10.1111/1756-2171.12396.

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Abstract

We examine the implications of consumer privacy when preferences today depend upon past consumption choices, and consumers shop from different sellers in each period. Although consumers are ex ante identical, their initial consumption choices cannot be deterministic. Thus, ex post heterogeneity in preferences arises endogenously. Consumer privacy improves social welfare, consumer surplus and the profits of the second-period seller, while reducing the profits of the first period seller, relative to the situation where consumption choices are observed by the later seller.

Type: Article
Title: Consumer Privacy and Serial Monopoly
DOI: 10.1111/1756-2171.12396
Publisher version: https://doi.org/10.1111/1756-2171.12396
Language: English
Additional information: This version is the author accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions.
Keywords: Consumer privacy, dynamic demand, endogenous screening, nonlinear pricing.
UCL classification: UCL
UCL > Provost and Vice Provost Offices > UCL SLASH
UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS
UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics
URI: https://discovery.ucl.ac.uk/id/eprint/10121356
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