Lambrecht, Anja, Seim, Katja, Vilcassim, Naufel, Cheema, Amar, Chen, Yuxin, Crawford, Gregory S., Hosanagar, Kartik, Iyengar, Raghuram, Koenigsberg, Oded, Lee, Robin, Miravete, Eugenio J. and Sahin, Ozge (2012) Price discrimination in service industries. Marketing Letters, Vol.23 (No.2). pp. 423-438. doi:10.1007/s11002-012-9187-0 ISSN 0923-0645.

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Abstract

This article outlines recent methods and applications directed at understanding the profit and consumer welfare implications of increasingly prevalent price discrimination strategies in the service sector. These industries are typically characterized by heterogeneity in consumers’ valuation and usage of the service, resale constraints, and a focus on price as the service’s key attribute. The article focuses on how firms use nonlinear pricing or bundling strategies to benefit from the heterogeneity in consumer demand. We describe the basic economic model commonly used in the literature to analyze such strategic choices and present recent methodological improvements to this benchmark. A discussion of existing applications and future research opportunities concludes the article.

Item Type:	Journal Article
Divisions:	Faculty of Social Sciences > Economics
Journal or Publication Title:	Marketing Letters
Publisher:	Springer
ISSN:	0923-0645
Official Date:	2012
Dates:	Date Event 2012 Published
Volume:	Vol.23
Number:	No.2
Page Range:	pp. 423-438
DOI:	10.1007/s11002-012-9187-0
Status:	Peer Reviewed
Publication Status:	Published
Access rights to Published version:	Restricted or Subscription Access

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