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Tilburg Law and Economics Center

TILEC supports and stimulates academic research on the governance of economic activity. It fosters academically path breaking and practically relevant research and aims to be a leading center worldwide.

TILEC Seminar: Willem van Boom (Leiden University)

Consumers Beware: Personalized Pricing in Action!
How the Framing of a Mandated Personalized Pricing Disclosure Influences Intention to Purchase
10:45-11:45, M 1003

TILEC Seminar: Willem van Boom (Leiden University)

By: W. H. Van Boom , J.I.Van der Rest, K.Van den Bos, M. Dechesne 

Van Boom is Professor of Private Law, Van der Rest is Professor of Business Administration, Dechesne is Associate Professor of Governance and Global Affairs, at Leiden University. Van den Bos is Professor of Social Psychology and Professor of Empirical Legal Science at Utrecht University.

Willem van Boom’s research and teaching covers private law broadly defined but also extends into comparative law as well as methodology and philosophy of private law. He has a keen interest in multidisciplinary legal research on ‘what works’ in private law; that is why he regularly works with experts in law and economics, psychology, socio-legal studies and jurisprudence.

Professor Willem Van Boom and Professor Jean Pierre Van Der Rest will both be in Tilburg to give the TILEC seminar presentation.

Abstract

Online businesses collect a wealth of data on customers, often without properly informing them. Increasingly, these data are used for behavioral price discrimination. This article explores how consumers would respond if businesses were compelled to disclose their use of discriminatory behavioral pricing techniques. Using different disclosure frames, we study the effects of disclosure on purchase intention and purchase probability. The findings indicate that specific disclosure frames affect purchase intentions, and that different frames have different effects. We find that a disclosure frame that is more in line with a consumer’s self-interest, will increase purchase intention; the frame indirectly affects intention to purchase through its effect on the perception that the use of behavioral pricing information serves self-interest. In this way, the study draws attention to a potentially unanticipated effect of regulatory intervention. Implications for future research and legal policy are discussed.

Keywords

Personalized Pricing; Behavioral Price Discrimination; Mandatory Disclosure; Warning Frames; Information Regulation, Privacy.


When: 12 December 2018 10:45

End date: 12 December 2018 11:45