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Price Discrimination With Nested Consideration

Ioana Chioveanu

The Journal of Industrial Economics2025https://doi.org/10.1111/joie.12410article
AJG 3ABDC A*
Weight
0.37

Abstract

This paper examines price discrimination by consideration in an oligopoly with nested reach. Consumers obtain a ranking of the firms and consider them consecutively, differing in how far down the list they go. A firm's product matches a consumer's preferences with an exogenous probability. In sufficiently asymmetric markets, under both uniform and discriminatory pricing, in equilibrium, competition is duopolistic: only two firms use any price interval. Firms face pricing trade‐offs due to consideration heterogeneity. Price discrimination alleviates these trade‐offs, but it intensifies competition. Compared to uniform pricing, it reduces industry profits and benefits consumers. In this setting, limitations on the use of consumer data may benefit the industry at the expense of consumers.

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https://doi.org/https://doi.org/10.1111/joie.12410

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@article{ioana2025,
  title        = {{Price Discrimination With Nested Consideration}},
  author       = {Ioana Chioveanu},
  journal      = {The Journal of Industrial Economics},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1111/joie.12410},
}

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Price Discrimination With Nested Consideration

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Evidence weight

0.37

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.16 × 0.4 = 0.06
M · momentum0.53 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.