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The paper studies indirect network effects in a market composed by two incompatible intermediaries that choose price (short-term issue) in addition to location (long-term issue). The paper first shows that (i) when the network externality is sufficiently weak, only maximum differentiation...
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In this paper we study a duopoly where the network e¤ect is nonmonotone and the network can be overloaded. The firms choose prices and locations endogenously, and the agent's utility is influenced by the number of people patronizing the same firm she does. We determine the market equilibrium,...
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Motivated by applications in shared vehicle systems, we study dynamic pricing of resources that relocate over a network of locations. Customers with private willingness-to-pay sequentially request to relocate a resource from one location to another, and a revenue-maximizing service provider sets...
Persistent link: https://www.econbiz.de/10014033107
In this paper we study a duopoly where the network effect is nonmonotone and the network can be overloaded. The firms choose prices and locations endogenously, and the agent's utility is influenced by the number of people patronizing the same firm she does. We determine the market equilibrium,...
Persistent link: https://www.econbiz.de/10014189973