Behavior-Based Pricing Meets Promised Delivery Times: What Firms and Policymakers Should Know
The rapid growth of information technology enables firms to track consumer purchase histories. This allows them to distinguish between new and returning customers, and to adjust both prices and delivery promises accordingly. A recent study develops a two-period duopoly game-theoretic model to examine how these strategies (behavior-based pricing (BBP) and behavior-based promised delivery times (BBT)) …