The Effects of Personal Data Management on Competition and Welfare

Published Online:https://doi.org/10.1287/mnsc.2024.08024

References

  • Acquisti A, Varian HR (2005) Conditioning prices on purchase history. Marketing Sci. 24(3):367–381.LinkGoogle Scholar
  • Acquisti A, Taylor C, Wagman L (2016) The economics of privacy. J. Econom. Lit. 54(2):442–492.CrossrefGoogle Scholar
  • Alcobendas M, Kobayashi SJ, Shi K, Shum M (2026) The impact of privacy measures on online advertising markets. Rev. Econom. Stud. Forthcoming. Google Scholar
  • Ali SN, Lewis G, Vasserman S (2023) Voluntary disclosure and personalized pricing. Rev. Econom. Stud. 90(2):538–571.CrossrefGoogle Scholar
  • Anderson S, Baik A, Larson N (2023) Price discrimination in the information age: Prices, poaching, and privacy with personalized targeted discounts. Rev. Econom. Stud. 90(5):2085–2115.CrossrefGoogle Scholar
  • Aridor G, Che YK, Salz T (2023) The effect of privacy regulation on the data industry: Empirical evidence from GDPR. RAND J. Econom. 54(4):695–730.CrossrefGoogle Scholar
  • Armstrong M, Vickers J (2010) Competitive non-linear pricing and bundling. Rev. Econom. Stud. 77(1):30–60.CrossrefGoogle Scholar
  • Belleflamme P, Vergote W (2016) Monopoly price discrimination and privacy: The hidden cost of hiding. Econom. Lett. 149:141–144.CrossrefGoogle Scholar
  • Belleflamme P, Lam WMW, Vergote W (2020) Competitive imperfect price discrimination and market power. Marketing Sci. 39(5):960–1015.LinkGoogle Scholar
  • Bester H, Petrakis E (1996) Coupons and oligopolistic price discrimination. Internat. J. Indust. Organ. 14(2):227–242.CrossrefGoogle Scholar
  • Biglaiser G, Ma CA (2003) Price and quality competition under adverse selection: Market organization and efficiency. RAND J. Econom. 34(2):266–286.CrossrefGoogle Scholar
  • Braulin FC (2023) The effects of personal information on competition: Consumer privacy and partial price discrimination. Internat. J. Indust. Organ. 87:102923.CrossrefGoogle Scholar
  • Caminal R, Matutes C (1990) Endogenous switching costs in a duopoly model. Internat. J. Indust. Organ. 8(3):353–373.CrossrefGoogle Scholar
  • Chen Y (1997) Paying customers to switch. J. Econom. Management Strategy 6(4):877–897.CrossrefGoogle Scholar
  • Chen Y, Zhang ZJ (2009) Dynamic targeted pricing with strategic consumers. Internat. J. Indust. Organ. 27(1):43–50.CrossrefGoogle Scholar
  • Chen Z, Choe C, Matsushima N (2020) Competitive personalized pricing. Management Sci. 66(9):4003–4023.LinkGoogle Scholar
  • Chen Y, Narasimhan C, Zhang ZJ (2001) Individual marketing with imperfect targetability. Marketing Sci. 20(1):23–41.LinkGoogle Scholar
  • Chen Z, Choe C, Cong J, Matsushima N (2022) Data-driven mergers and personalization. RAND J. Econom. 53(1):3–31.CrossrefGoogle Scholar
  • Choe C, King S, Matsushima N (2018) Pricing with cookies: Behavior-based price discrimination and spatial competition. Management Sci. 64(12):5669–5687.LinkGoogle Scholar
  • Choe C, Matsushima N, Tremblay MJ (2022) Behavior-based personalized pricing: When firms can share customer information. Internat. J. Indust. Organ. 82:102846.CrossrefGoogle Scholar
  • Colombo S (2016) Imperfect behavior-based price discrimination. J. Econom. Management Strategy 25(3):563–583.CrossrefGoogle Scholar
  • Colombo S (2018) Behavior- and characteristic-based price discrimination. J. Econom. Management Strategy 27(2):237–250.CrossrefGoogle Scholar
  • Cordorelli D, Padilla J (2024) Data-driven envelopment with privacy-policy tying. Econom. J. 134(658):515–537.Google Scholar
  • de Cornière A, Taylor G (2024) Data-driven mergers. Management Sci. 70(9):6473–6482.AbstractGoogle Scholar
  • Dubé J-P, Misra S (2023) Personalized pricing and consumer welfare. J. Political Econom. 131(1):131–189.CrossrefGoogle Scholar
  • Ellis RP (1998) Creaming, skimping and dumping: Provider competition on the intensive and extensive margins. J. Health Econom. 17(5):537–555.CrossrefGoogle Scholar
  • Esteves R-B (2014) Price discrimination with private and imperfect information. Scand. J. Econom. 116(3):766–796.CrossrefGoogle Scholar
  • Esteves R-B, Resende J (2016) Competitive targeted advertising with price discrimination. Marketing Sci. 35(4):576–587.LinkGoogle Scholar
  • Ezrachi A, Stucke ME (2016) Virtual Competition: The Promise and Perils of the Algorithm Driven Economy (Harvard University Press, Cambridge, MA).CrossrefGoogle Scholar
  • Fudenberg D, Tirole J (1984) The fat-cat effect, the puppy-dog ploy, and the lean and hungry look. Amer. Econom. Rev. Papers Proc. 74(2):361–366.Google Scholar
  • Fudenberg D, Tirole J (2000) Customer poaching and brand switching. RAND J. Econom. 31(4):634–657.CrossrefGoogle Scholar
  • Gal-Or E (1997) Exclusionary equilibria in health-care markets. J. Econom. Management Strategy 6(1):5–43.CrossrefGoogle Scholar
  • Gaynor M, Town RJ (2011) Competition in health care markets. Pauly MV, Mcguire TG, Barros PP, eds. Chapter 9, Handbook of Health Economics, vol. 2 (North Holland, Waltham, MA), 499–637.Google Scholar
  • Goldfarb A, Tucker C (2019) Digital economics. J. Econom. Lit. 57(1):3–43.CrossrefGoogle Scholar
  • Herresthal C, Mayskaya T, Nikandrova A (2025) Data linkage between markets: Hidden dangers and unexpected benefits. Preprint, submitted January 31, https://doi.org/10.2139/ssrn.4238784.Google Scholar
  • Ichihashi S (2020) Online privacy and information disclosure by consumers. Amer. Econom. Rev. 110(2):569–595.CrossrefGoogle Scholar
  • Jing B (2016) Customer recognition in experience vs. inspection good markets. Management Sci. 62(1):216–224.LinkGoogle Scholar
  • Jing B (2017) Behavior-based pricing, production efficiency, and quality differentiation. Management Sci. 63(7):2365–2376.LinkGoogle Scholar
  • Ke T, Sudhir K (2023) Privacy rights and data security: GDPR and personal data driven markets. Management Sci. 69(8):4389–4412.LinkGoogle Scholar
  • Koh B, Raghunathan S, Nault BR (2017) Is voluntary profiling welfare enhancing? MIS Quart. 41(1):23–41.CrossrefGoogle Scholar
  • Laussel D (2023) Do firms always benefit from the presence of active customers? Appl. Econom. 55(20):2292–2307.CrossrefGoogle Scholar
  • Laussel D, Resende J (2022) When is product personalization profit-enhancing? A behavior-based discrimination model. Management Sci. 68(12):8872–8888.LinkGoogle Scholar
  • Li KJ, Jain S (2016) Behavior-based pricing: An analysis of the impact of peer-induced fairness. Management Sci. 62(9):2705–2721.LinkGoogle Scholar
  • Li X, Li B, Yang Z (2025) The dark side of voluntary data sharing. MIS Quart. 49(1):155–178.CrossrefGoogle Scholar
  • Lin T (2022) Valuing intrinsic and instrumental preferences for privacy. Marketing Sci. 41(4):663–681.LinkGoogle Scholar
  • Liu Q, Serfes K (2004) Quality of information and oligopolistic price discrimination. J. Econom. Management Strategy 13(4):671–702.CrossrefGoogle Scholar
  • Matutes C, Regibeau P (1988) “Mix and match”: Product compatibility without network externalities. RAND J. Econom. 19(2):221–234.CrossrefGoogle Scholar
  • Miklós-Thal J, Goldfarb A, Haviv AM, Tucker C (2024) Digital hermits. Marketing Sci. 43(4):697–708.LinkGoogle Scholar
  • Montes R, Sand-Zantman W, Valletti T (2019) The value of personal information in online markets with endogenous privacy. Management Sci. 65(3):1342–1362.LinkGoogle Scholar
  • Moorthy S, Shahrokhi Tehrani S (2023) Targeting advertising spending and price on the Hotelling line. Marketing Sci. 42(6):1057–1079.LinkGoogle Scholar
  • Ning ZE, Shin J, Yu J (2025) Targeted advertising as implicit recommendation: Strategic mistargeting and personal data opt-out. Marketing Sci. 44(2):390–410.LinkGoogle Scholar
  • Ozalp H, Ozcan P, Dinckol D, Zachariadis M, Gawer A (2022) “Digital colonization” of highly regulated industries: An analysis of Big Tech platforms’ entry into health care and education. Calif. Management Rev. 64(4):78–107.CrossrefGoogle Scholar
  • Pazgal A, Soberman D (2008) Behavior-based discrimination: Is it a winning play, and if so, when? Marketing Sci. 27(6):977–994.LinkGoogle Scholar
  • Rhee KE, Thomadsen R (2017) Behavior-based pricing in vertically differentiated industries. Management Sci. 63(8):2729–2740.LinkGoogle Scholar
  • Rhodes A, Zhou J (2026) Personalization and privacy choice. RAND J. Econom. Forthcoming. Google Scholar
  • Shaffer G, Zhang ZJ (2002) Competitive one-to-one promotions. Management Sci. 48(9):1143–1160.LinkGoogle Scholar
  • Shiller BR (2020) Approximating purchase propensities and reservation prices from broad consumer tracking. Internat. Econom. Rev. (Philadelphia) 61(2):847–870.CrossrefGoogle Scholar
  • Shin J, Sudhir K (2010) A customer management dilemma: When is it profitable to reward one’s own customers? Marketing Sci. 29(4):671–689.LinkGoogle Scholar
  • Shin J, Sudhir K, Yoon D (2012) When to “fire” customers: Customer cost-based pricing. Management Sci. 58(5):932–947.LinkGoogle Scholar
  • Smith AN, Seiler S, Aggarwal I (2022) Optimal price targeting. Marketing Sci. 42(3):476–499.LinkGoogle Scholar
  • Subramanian U, Raju J, Zhang J (2014) The strategic value of high-cost customers. Management Sci. 60(2):494–507.LinkGoogle Scholar
  • Thisse J-F, Vives X (1988) On the strategic choice of spatial price policy. Amer. Econom. Rev. 78(1):127–137.Google Scholar
  • Valletti T, Wu J (2020) Consumer profiling with data requirements: Structure and policy implications. Production Oper. Management 29(2):309–329.CrossrefGoogle Scholar
  • Villas-Boas JM (1999) Dynamic competition with customer recognition. RAND J. Econom. 30(4):604–631.CrossrefGoogle Scholar
  • Wagner G, Eidenmüller H (2019) Down by algorithms: Siphoning rents, exploiting biases, and shaping preferences: Regulating the dark side of personalized transactions. Univ. Chicago Law Rev. 86(2):581–610.Google Scholar
  • Worden K (2025) Erasing illusions: A statutory framework for deletion in U.S. data privacy. Texas A&M Law Rev. 12(2):925–960.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.