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Title: Consumer Privacy and Serial Monopoly

Author(s): Venkataraman Bhaskar and Nikita Roketskiy

Publication Date: April 2019

Keyword(s): consumer privacy, dynamic demand, endogenous screening and Nonlinear Pricing

Programme Area(s): Industrial Organization

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.

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Bibliographic Reference

Bhaskar, V and Roketskiy, N. 2019. 'Consumer Privacy and Serial Monopoly'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=13686