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Abstract
A price discrimination model is proposed to explain extraneous information provided by internet
sales sites for agricultural inputs. Whether an informative site is offered depends on price
discrimination potential, which depends on how much farmers reveal heterogeneity by internet
behavior. Price discrimination is greater if information benefits are negatively correlated with
farm-size, explaining why extraneous (not product-related) information is offered on internet
sales sights. Price discrimination adversely affects some farmers but may be beneficial on
average because it generates free information. Outcomes depend on whether internet users are
aware of price differentials generated by the reverse flow of clickstream information.