Strategy-proof Market Segmentation against Price Discrimination

Fuente: arXiv
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Autori principali: Kuang, Zhonghong, Li, Sanxi, Liu, Yi, Yu, Yang
Natura: Preprint
Pubblicazione: 2026
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author Kuang, Zhonghong
Li, Sanxi
Liu, Yi
Yu, Yang
author_facet Kuang, Zhonghong
Li, Sanxi
Liu, Yi
Yu, Yang
contents Data regulations increasingly enable consumers to switch among market segments, making segmentation an endogenous outcome of strategic interaction. We study a model in which consumers choose segments before a monopolist sets segment-specific prices, and define a segmentation as strategy-proof when no consumer with positive measure can profitably deviate. Our main result provides a complete welfare characterization: in every strategy-proof segmentation, producer surplus is pinned at the uniform monopoly profit, consumer surplus ranges from the uniform monopoly level to the buyer-optimal level, and every consumer is weakly better off. We construct strategy-proof segmentations attaining every feasible outcome in this range. A finite-consumer model microfounds our solution concept, with equilibrium outcomes converging to our characterization as the population grows large.
format Preprint
id arxiv_https___arxiv_org_abs_2603_20609
institution arXiv
publishDate 2026
record_format arxiv
spellingShingle Strategy-proof Market Segmentation against Price Discrimination
Kuang, Zhonghong
Li, Sanxi
Liu, Yi
Yu, Yang
Theoretical Economics
Data regulations increasingly enable consumers to switch among market segments, making segmentation an endogenous outcome of strategic interaction. We study a model in which consumers choose segments before a monopolist sets segment-specific prices, and define a segmentation as strategy-proof when no consumer with positive measure can profitably deviate. Our main result provides a complete welfare characterization: in every strategy-proof segmentation, producer surplus is pinned at the uniform monopoly profit, consumer surplus ranges from the uniform monopoly level to the buyer-optimal level, and every consumer is weakly better off. We construct strategy-proof segmentations attaining every feasible outcome in this range. A finite-consumer model microfounds our solution concept, with equilibrium outcomes converging to our characterization as the population grows large.
title Strategy-proof Market Segmentation against Price Discrimination
topic Theoretical Economics
url https://arxiv.org/abs/2603.20609