Personalized pricing, network effects, and commitment

• 成果类型: Article
• 署名作者: Xiong, Yan; Yang, Liyan
• 署名单位: University of Hong Kong; University of Toronto
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2025.106036
• 发表日期: 2025
• 关键词: Personalized pricing; network effects; Price observability; COMMITMENT

摘要

Big data and data technology have facilitated the widespread adoption of personalized pricing practices. While price personalization enables firms to extract greater rent from consumers, it often reduces price transparency, which can negatively impact firm profits in situations involving consumer coordination. In such contexts, a firm's commitment to pricing strategies can become essential for restoring profitability. We explore several commitment devices available to firms and discuss their implications. These devices include delegating pricing decisions to a manager who prioritizes consumer surplus, leveraging existing networks as signals for later consumers or to build reputation, and implementing uniform pricing or price caps in response to regulatory restrictions.