Rayna, T;
Darlington, J;
Striukova, L;
(2015)
Pricing music using personal data: mutually advantageous first-degree price discrimination.
Electronic Markets
, 25
(2)
pp. 139-154.
10.1007/s12525-014-0165-7.
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Abstract
In addition to customized products and services, personal data also enables personalized pricing. However, consumers are often unwilling to accept being price discriminated for fear that they would end up paying more for the same product or service. This article demonstrates that by rewarding consumers for disclosing personal information it is possible to achieve a situation where first-degree price discrimination is mutually advantageous and both buyers and sellers gain by adopting such a pricing model. The conditions required for this to happen are investigated and the impact on social welfare is discussed. Finally, the article considers the robustness of this model when consumers adopt an opportunistic behavior which consists in manipulating personal data in order to masquerade as a consumer with a lower willingness to pay.
| Type: | Article |
|---|---|
| Title: | Pricing music using personal data: mutually advantageous first-degree price discrimination |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1007/s12525-014-0165-7 |
| Publisher version: | http://dx.doi.org/10.1007/s12525-014-0165-7 |
| Language: | English |
| Additional information: | Copyright © 2014, The Author(s). This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL BEAMS UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of Engineering Science |
| URI: | https://discovery.ucl.ac.uk/id/eprint/1447623 |
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