Maia Cufré - Research

Working Papers

"Free vs. fee: a model of price discrimination"

Abstract: I study the trade-off faced by a firm that operates on a platform and generates revenues from subscriptions and advertising in an economy with heterogeneous agents. I present a basic model with a no-discrimination policy, as it is the main business strategy many firms adopt in this field. In addition, I extend this structure by considering a screening model that allows the firm to offer different contracts to different types of consumers. Finally, I conduct an empirical analysis with a unique database from one of the leading traditional Argentinian media outlets. I calibrate the model, study the optimality of the firm policy choice, and propose some alternative approaches.