| 来源类型 | Working Paper
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| 规范类型 | 报告
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| DOI | 10.3386/w23775
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| 来源ID | Working Paper 23775
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| Personalized Pricing and Consumer Welfare |
| Jean-Pierre Dubé; Sanjog Misra
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| 发表日期 | 2017-09-11
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| 出版年 | 2017
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| 语种 | 英语
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| 摘要 | We study the welfare implications of personalized pricing, an extreme form of third-degree price discrimination implemented with machine learning for a large, digital firm. Using data from a unique randomized controlled pricing field experiment we train a demand model and conduct inference about the effects of personalized pricing on firm and consumer surplus. In a second experiment, we validate our predictions in the field. The initial experiment reveals unexercised market power that allows the firm to raise its price optimally, generating a 55% increase in profits. Personalized pricing improves the firm's expected posterior profits by an additional 19%, relative to the optimized uniform price, and by 86%, relative to the firm's unoptimized status quo price. Turning to welfare effects on the demand side, total consumer surplus declines 23% under personalized pricing relative to uniform pricing, and 47% relative to the firm's unoptimized status quo price. However, over 60% of consumers benefit from lower prices under personalization and total welfare can increase under standard inequity-averse welfare functions. Simulations with our demand estimates reveal a non-monotonic relationship between the granularity of the segmentation data and the total consumer surplus under personalization. These findings indicate a need for caution in the current public policy debate regarding data privacy and personalized pricing insofar as some data restrictions may not per se improve consumer welfare. |
| 主题 | Econometrics
; Estimation Methods
; Experimental Design
; Microeconomics
; Market Structure and Distribution
; Industrial Organization
; Market Structure and Firm Performance
; Other
; Accounting, Marketing, and Personnel
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| URL | https://www.nber.org/papers/w23775
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| 来源智库 | National Bureau of Economic Research (United States)
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| 引用统计 |
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| 资源类型 | 智库出版物
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| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/581449
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推荐引用方式
GB/T 7714 |
Jean-Pierre Dubé,Sanjog Misra. Personalized Pricing and Consumer Welfare. 2017.
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文件名：
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w23775.pdf
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格式：
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Adobe PDF
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