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This paper analyzes the generalized quality differentiation model in multi-sided markets with positive externalities, which leads to new insights into the optimal pricing structure of the firm. We find that quality differentiation for users on one side affects not only the side involving...
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A monopolist producing vertically differentiated durable goods can offer in each period a sequence of price … that cannot commit to future price-quality menus is bounded below by a strictly positive value independent of the discount …
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