Romain de Nijs et al., « Behavior-based pricing with experience goods », HAL-SHS : économie et finance, ID : 10670/1.lk0h28
We consider a two-period model in which duopolists sell experience goods and practice behavior-based price discrimination (BBPD). We give general conditions for when firms should offer a lower price to existing customers ('pay-to-stay') or to new customers ('pay-to-switch'). We also demonstrate that unlike previous results, BBPD may intensify competition in the first period but weaken it in the second.