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We consider a monopoly that sets a price and differentiated referral fees to spread product information along a simple consumer communication network (a chain). The profit-maximizing solution involves standard monopoly pricing and referral fees that provide consumers with strictly positive...
Persistent link: https://www.econbiz.de/10013043952
In many industries, firms reward their customers for making referrals. We analyze the optimal policy mix of price, advertising intensity, and referral fee for a monopoly when buyers choose to what extent to refer other consumers to the firm. We find that the firm uses its referral fee, but not...
Persistent link: https://www.econbiz.de/10013062406
Jun and Kim (2008) consider the optimal pricing and referral strategy of a monopoly that uses a consumer communication network to spread product information. They show that for any finite referral chain, the optimal policy involves a referral fee that provides strictly positive referral...
Persistent link: https://www.econbiz.de/10013062407
him. This relation becomes particularly transparent when externalities are dominant: NE can be characterized in terms of …
Persistent link: https://www.econbiz.de/10010547942
IBM. ATT. Microsoft. Intel. IBM (redux). Google. Twitter. Facebook. All are present or former leaders in key high-tech sectors. These firms also all have been the subject of serious antitrust scrutiny over the past three decades. All have been referred to at different times as “monopolies”...
Persistent link: https://www.econbiz.de/10014176308
I analyze a market where there is a homogeneous good, which quality is chosen, and therefore known, by a single producer. Consumers do not know the quality of the good but they use their acquaintances in order to obtain information about it. Information transmission exhibits decay and consumers...
Persistent link: https://www.econbiz.de/10014057278
him. This relation becomes particularly transparent when externalities are dominant: NE can be characterized in terms of …
Persistent link: https://www.econbiz.de/10014169812
targeted customers. We demonstrate that, in business settings that are characterized by network externalities, a CRM campaign …
Persistent link: https://www.econbiz.de/10011551285
The Covid-19 epidemic highlighted the significance of externalities: contacts with other people do not only affect our … chances of getting infected but also our entire network. We introduce a model for coalitional network stability in networks … with widespread externalities. The network function form generalises the partition function form of cooperative games in …
Persistent link: https://www.econbiz.de/10012253697
' efforts do not neutralize each other and their payoffs and competitive advantages depend on the networks they face. Our …
Persistent link: https://www.econbiz.de/10011576305