Dilemma of Data Sharing Alliance: When Do Competing Personalizing and Non‐Personalizing Firms Share Data

We analyze a case where two competing firms, a personalizing firm that makes product recommendations and a non‐personalizing firm that does not recommend products, compete with each other and may participate in a data sharing alliance (in which the non‐personalizing firm shares its data with the personalizing firm). The customer is strategic as she first visits the personalizing firm to find out what product to purchase among the recommended...