Winners and losers of gatekeeper-induced consumer preference distortion in promoting personalized pricing by asymmetric firms
Autor(a) principal: | |
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Data de Publicação: | 2023 |
Outros Autores: | |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | https://hdl.handle.net/1822/83060 |
Resumo: | We present a model of duopoly competition in a marketplace with a llotelling segment of consumer& where two business users (firms) have access to raw consumer data. The firms can chase between personalized prim (PP). using a costly personalized program device provided by the marketplace. or tunform prices at no additional cost. One firm has a higher level of experience in utilizing consumer data. insulting in a lower cost of price personalization (PP device cost). In order to promote its personalized program device, the marketplace may have an incentive to distort consumer preferences from a uniform to a triangular distribution. Our findings indicate that the marketplace is more likely to distort consumer preferences under specific conditions. This occurs when there is moderate asymmetry in experience between the rums and a high tariff for the program. or when there is weak asymmetry and a moderate program tariff. In these parameter regions, the distortion of COD/411111er preferences negatively impact the profits of the sellers while benefiting the consumers. nose insights contribute to a better understanding of the dynamics of digital marketplaces and have implications for policymakers and competition authorities. |
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Winners and losers of gatekeeper-induced consumer preference distortion in promoting personalized pricing by asymmetric firmsCompetitive price discriminationUniform and triangular distribution of consumer preferencesDigital marketsPlatform cloud servicesEuropean Digital Market ActD43D80L13L40We present a model of duopoly competition in a marketplace with a llotelling segment of consumer& where two business users (firms) have access to raw consumer data. The firms can chase between personalized prim (PP). using a costly personalized program device provided by the marketplace. or tunform prices at no additional cost. One firm has a higher level of experience in utilizing consumer data. insulting in a lower cost of price personalization (PP device cost). In order to promote its personalized program device, the marketplace may have an incentive to distort consumer preferences from a uniform to a triangular distribution. Our findings indicate that the marketplace is more likely to distort consumer preferences under specific conditions. This occurs when there is moderate asymmetry in experience between the rums and a high tariff for the program. or when there is weak asymmetry and a moderate program tariff. In these parameter regions, the distortion of COD/411111er preferences negatively impact the profits of the sellers while benefiting the consumers. nose insights contribute to a better understanding of the dynamics of digital marketplaces and have implications for policymakers and competition authorities.This research has been financed by Portuguese public funds, through Norte 2020, FEDER and FCT(projects reference NORTE-01-0145-FEDER-028540 and FCT2022.03862.PTDC).Universidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE)Universidade do MinhoEsteves, Rosa BrancaPasquier, Nicolas Robert Simon2023-062023-06-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttps://hdl.handle.net/1822/83060enghttps://nipe.eeg.uminho.pt/publicacoes-nipe/#documentos-de-trabalhoinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-07-21T12:42:30ZPortal AgregadorONG |
dc.title.none.fl_str_mv |
Winners and losers of gatekeeper-induced consumer preference distortion in promoting personalized pricing by asymmetric firms |
title |
Winners and losers of gatekeeper-induced consumer preference distortion in promoting personalized pricing by asymmetric firms |
spellingShingle |
Winners and losers of gatekeeper-induced consumer preference distortion in promoting personalized pricing by asymmetric firms Esteves, Rosa Branca Competitive price discrimination Uniform and triangular distribution of consumer preferences Digital markets Platform cloud services European Digital Market Act D43 D80 L13 L40 |
title_short |
Winners and losers of gatekeeper-induced consumer preference distortion in promoting personalized pricing by asymmetric firms |
title_full |
Winners and losers of gatekeeper-induced consumer preference distortion in promoting personalized pricing by asymmetric firms |
title_fullStr |
Winners and losers of gatekeeper-induced consumer preference distortion in promoting personalized pricing by asymmetric firms |
title_full_unstemmed |
Winners and losers of gatekeeper-induced consumer preference distortion in promoting personalized pricing by asymmetric firms |
title_sort |
Winners and losers of gatekeeper-induced consumer preference distortion in promoting personalized pricing by asymmetric firms |
author |
Esteves, Rosa Branca |
author_facet |
Esteves, Rosa Branca Pasquier, Nicolas Robert Simon |
author_role |
author |
author2 |
Pasquier, Nicolas Robert Simon |
author2_role |
author |
dc.contributor.none.fl_str_mv |
Universidade do Minho |
dc.contributor.author.fl_str_mv |
Esteves, Rosa Branca Pasquier, Nicolas Robert Simon |
dc.subject.por.fl_str_mv |
Competitive price discrimination Uniform and triangular distribution of consumer preferences Digital markets Platform cloud services European Digital Market Act D43 D80 L13 L40 |
topic |
Competitive price discrimination Uniform and triangular distribution of consumer preferences Digital markets Platform cloud services European Digital Market Act D43 D80 L13 L40 |
description |
We present a model of duopoly competition in a marketplace with a llotelling segment of consumer& where two business users (firms) have access to raw consumer data. The firms can chase between personalized prim (PP). using a costly personalized program device provided by the marketplace. or tunform prices at no additional cost. One firm has a higher level of experience in utilizing consumer data. insulting in a lower cost of price personalization (PP device cost). In order to promote its personalized program device, the marketplace may have an incentive to distort consumer preferences from a uniform to a triangular distribution. Our findings indicate that the marketplace is more likely to distort consumer preferences under specific conditions. This occurs when there is moderate asymmetry in experience between the rums and a high tariff for the program. or when there is weak asymmetry and a moderate program tariff. In these parameter regions, the distortion of COD/411111er preferences negatively impact the profits of the sellers while benefiting the consumers. nose insights contribute to a better understanding of the dynamics of digital marketplaces and have implications for policymakers and competition authorities. |
publishDate |
2023 |
dc.date.none.fl_str_mv |
2023-06 2023-06-01T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
https://hdl.handle.net/1822/83060 |
url |
https://hdl.handle.net/1822/83060 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
https://nipe.eeg.uminho.pt/publicacoes-nipe/#documentos-de-trabalho |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
Universidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE) |
publisher.none.fl_str_mv |
Universidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE) |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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1777303823824453632 |