Market Segmentation and Product Steering

Terstiege, Stefan; Vigier, Adrien

doi:10.1257/mic.20240078

Abstract

A monopolistic seller possesses an inventory containing distinct products, each consumer wishes to buy a single product, and the seller can steer consumers鈥� choices. We fully characterize the producer-consumer surplus pairs induced by market segmentation when the number of products is large. The same characterization holds if the seller cannot price discriminate. We also investigate the relationship between consumer surplus, social welfare, and consumer privacy. Along the Pareto frontier, points with greater consumer surplus can be reached by market segmentations that afford more privacy.

蝌蚪网

蝌蚪网 Journal:
Microeconomics