Consumer Privacy and Serial Monopoly

Fuente: arXiv
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Hauptverfasser: Bhaskar, V., Roketskiy, Nikita
Format: Preprint
Veröffentlicht: 2019
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author Bhaskar, V.
Roketskiy, Nikita
author_facet Bhaskar, V.
Roketskiy, Nikita
contents 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.
format Preprint
id arxiv_https___arxiv_org_abs_1904_07644
institution arXiv
publishDate 2019
record_format arxiv
spellingShingle Consumer Privacy and Serial Monopoly
Bhaskar, V.
Roketskiy, Nikita
Theoretical Economics
General Economics
Economics
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.
title Consumer Privacy and Serial Monopoly
topic Theoretical Economics
General Economics
Economics
url https://arxiv.org/abs/1904.07644