skip to content

The Cambridge-INET Institute - continuing as the Janeway Institute

WP Cover

Elliott, M., Galeotti., A., Koh., A, and Li, W.

Market Segmentation Through Information

JIWP Number: 2114

Abstract: An information designer has information about consumers' preferences over products sold by oligopolists and chooses what information to reveal to firms who, then, compete on price by making personalized offers. We study the market outcomes the designer can achieve. The information designer is a metaphor for an internet platform which uses data on consumers to target advertisements that include discounts and promotions. Our analysis demonstrates the power that users' data can endow internet platforms with, and speaks directly to current regulatory debates.

Keywords: Information design, market segmentation, price discrimination

JEL Codes: D43 D83 L13

Author links: Matthew Elliott  

PDF: jiwp2114.pdf

Open Access Link: 10.17863/CAM.99007

Theme: networks