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Monopoly price discrimination and privacy: the hidden cost of hiding

Author

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  • Paul BELLEFLAMME
  • Wouter VERGOTE

Abstract

A monopolist can use a ‘tracking’ technology to identify a consumer’s willingness to pay with some probability. Consumers can counteract tracking by acquiring a ‘hiding’ technology. We show that consumers may be collectively better off absent this hiding technology.
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Suggested Citation

  • Paul BELLEFLAMME & Wouter VERGOTE, 2016. "Monopoly price discrimination and privacy: the hidden cost of hiding," LIDAM Reprints CORE 2810, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvrp:2810
    Note: In : Economics Letters, 149, 141-144, 2016
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D18 - Microeconomics - - Household Behavior - - - Consumer Protection
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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