Competitive price discrimination, imperfect information, and consumer search

Search, Data, and Market Power

“…Mauring (2021) and Atayev (2021) assume that firms receive imperfect information about the affiliation of a particular consumer to the groups of shoppers and non-shoppers. Marshall (2020) and Groh (2022) are the only papers which consider models of price discrimination based on information about valuations together with search, as this paper does. In all the listed contributions, consumers do not engage in directed search and no firm has a data advantage.…”