LAUSR

Abstract As the collection of consumer data becomes more common, online merchants are better equipped to price discriminate now more than ever before. While standard first-degree price discrimination benefits merchants and harms consumers relative to uniform pricing, I derive an alternative first-degree pricing strategy that achieves efficiency and Pareto improves upon the uniform pricing equilibrium. Furthermore, I show that price ceilings can enforce these Pareto price discrimination strategies, making Pareto price discrimination a viable option for merchants and policy makers.