Working Papers
Customer Recognition Beyond Prices: Service Priority in Congested Markets
Summary. This paper studies how customer recognition affects market outcomes when purchase history determines both prices and service priority in congested markets. In a two-period Hotelling duopoly, congestion makes the profit and consumer-surplus effects of customer recognition ambiguous even when service itself is history-neutral. The direction of priority matters: loyal priority reduces switching, raises loyalty prices, and lowers poaching prices, while poached priority has the opposite effects and can reverse the usual price ranking. Within the maintained interior comparison, strict loyal-first service maximizes symmetric firm profit, consumers prefer a bias toward poached customers, and no recognition yields higher welfare.
Renewal Timing and the Profitability of Behavior-Based Price Discrimination
With S. Colombo and R.-B. Esteves. Submitted.
Summary. This paper studies how the timing of renewal and acquisition decisions changes the competitive effects of customer recognition. Making renewal prices operative and observable before acquisition offers turns them into short-run commitments, softening poaching competition and weakening first-period competition. This loyalty-first sequence reverses the standard BBPD profit ranking: it yields higher profits than both uniform pricing and simultaneous BBPD, but lower consumer surplus and welfare and more switching. Thus, higher churn can coexist with weaker competition, so churn alone is not a sufficient statistic for competitive intensity.
Work in Progress
Behavior-Based Pricing with Multihoming
Behavior-Based Price Discrimination with Multi-Period Purchase Histories
Publications
Forthcoming in Information Economics and Policy.
With A. Mukherjee. The B.E. Journal of Economic Analysis & Policy, 25(1), 115–125, 2025.
Economics Bulletin, 45(3), 1441–1450, 2025.
Economics Bulletin, 45(3), 1451–1456, 2025.
Other Research
Welfare Effects of Overlapping Ownership in Supply Function Competition
With E. Cumbul. Revise and resubmit, Rekabet Dergisi (Competition Journal).
Cross Ownership and Environmental Corporate Social Responsibility under Green Subsidy: Cournot versus Bertrand Competition
With A. Mukherjee, B. Senalp, and U. E. Senalp. Working paper.
Cross Ownership versus Two-Part Tariff Licensing under Knowledge Transfer in a Cournot Oligopoly
With S. Colombo, S. Ma, and A. Mukherjee. Work in progress.