Consumer poaching, brand switching, and price transparency

Research output: Contribution to journalJournal articlepeer-review

This paper addresses price transparency on the consumer side in markets with behavioral price
discrimination which feature welfare reducing brand switching. When long-term contracts are not
available, an increase in transparency intensifies competition, lowers prices and profits, reduces brand
switching and benefits consumers and welfare. With long-term contracts, an increase in transparency
reduces the use of long-term contracts, leading to more brand switching and a welfare loss. Otherwise,
the results are the same as without long-term contracts.
Original languageEnglish
JournalEconomics Letters
Volume123
Pages (from-to)266-269
Number of pages4
ISSN0165-1765
DOIs
Publication statusPublished - 2014

Bibliographical note

JEL classification: L13, L41

ID: 125163673