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I present a new model of optimal dynamic pricing and diffusion of a network good sold by a monopolist. The good in this model is a social network good in that each consumer’s value of the good within a social network increases as more of her neighbors use the good. In each period, the...
Persistent link: https://www.econbiz.de/10014150396
We examine tippy network markets that accommodate price discrimination. The analysis shows that when a mild equilibrium refinement, the monotonicity criterion, is adopted, network competition may have a unique subgame-perfect equilibrium regarding the winner's identity; the prevailing brand may...
Persistent link: https://www.econbiz.de/10013183784
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information together will lead to a downward distortion for all consumers in the quantities provided. Despite the overall downward …
Persistent link: https://www.econbiz.de/10014103016
previous sales before choosing whether to buy himself. A sequential scheme maximizes the amount of information available to …
Persistent link: https://www.econbiz.de/10013072044
previous sales before choosing whether to buy himself. A sequential scheme maximizes the amount of information available to …
Persistent link: https://www.econbiz.de/10013072911
implications. We then analyze the extent to which the platform's own information sharing policy substitutes for its commitment to … entry. We characterize the platform's optimal information policy and examine how it interacts with the platform's fee …
Persistent link: https://www.econbiz.de/10014430750
a simple framework with two distinct types of agents on market side 1, we show that under incomplete information the … extent of platform access for high-demand agents is strictly reduced below the benchmark level with complete information. In …
Persistent link: https://www.econbiz.de/10010487752
demonstrate that the joint presence of asymmetric information and positive network effects leads to a strict downward distortion …
Persistent link: https://www.econbiz.de/10011560594
A platform matches agents from two sides of a market to create a trading opportunity between them. The agents subscribe to the platform by paying subscription fees which are contingent on their reported private types, and then engage in strategic interactions with their matched partner(s). A...
Persistent link: https://www.econbiz.de/10012844756