This has permitted for a paradigm transfer in the activities of commerce and competition (Miyazaki and Fernandez, 2006, p. 1). The ascendance of the Internet as a distribution conduit has had a substantial impact on business in the majority of zones. In reality, the Internet has turned out to be an efficient means of commerce for a variety of products such as books, CDs, and electronic equipment. The online retailers have radically changed specific markets within a few years (Galarza and Gissler, 2009, p. 4). The present study seeks to assess the likely impact of online shopping on sellers’ ability to implement price discrimination and on social welfare and efficiency.
In case of intertemporal price discrimination a number of the pricing issues are linked with general tracking technologies. Models of repetitive interfaces between sellers and their clients are applied in which sellers apply a variety of information technologies to locate clients over time (for example, Internet “cookies” in online shopping), and clients use strategies (for example, delaying acquisitions, choosing a different dealer, or accepting anonymizing or privacy technologies) to circumvent being tracked. The models emphasized the conditions under which sellers find it optimal to utilize tracking data about their clients for price discrimination, and the conditions under which clients find it optimal to disclose or hide their individualities (Acquisti, 2005, p. 2).
By tracking and assessing individual consumer data, sellers can put into practice interactive marketing strategies and propose to each person a personalized offer. In particular, vendors can utilize customer information (combining situation, historical, setting and individual data) for price discrimination. A fascinating result in the micro economic literature, however, demonstrates that price discrimination is not an optimal approach when the vendor can commit to prices and customers have