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Pricing of Complements and Network Effects

Economides, Nicholas; Viard, V. Brian - 2014

We discuss the case of a monopolist of a base good in the presence of a complementary good provided either by it or by another firm. We assess and calibrate the extent of the influence on the profits from the base good that is created by the existence of the complementary good. We establish an...

Persistent link: https://www.econbiz.de/10014030948

Effects of Algorithmic Pricing on Platform Competition

Sánchez-Cartas, J. Manuel; Katsamakas, Evangelos - 2022

Platforms play an essential role in the modern economy. At the same time, algorithms are becoming more widely used for pricing and other business functions. Previous literature examined algorithmic pricing, but not in the context of network effects and platforms. Moreover, platform competition...

Persistent link: https://www.econbiz.de/10013296567

Economic Features of the Internet and Network Neutrality

Economides, Nicholas - 2015

We discuss the issue of a possible abolition of network neutrality and the introduction of paid prioritization by residential broadband access networks. We show that, in short run analysis where bandwidth is fixed, and in the absence of congestion, network neutrality tends to maximize total...

Persistent link: https://www.econbiz.de/10013018075

Welfare implications of personalized pricing in competitive platform markets : the role of network effects

Lu, Qiuyu; Matsushima, Noriaki; Shekhar, Shiva - 2024

This study explores the welfare impact of personalized pricing for consumers in a duopolistic two-sided market, with consumers single-homing and developers affiliating with a platform according to their outside option. Personalized pricing, which is private in nature, cannot influence...

Persistent link: https://www.econbiz.de/10014490912

Efficiency and incidence of taxation with free entry and love-of-variety

Kroft, Kory; Laliberté, Jean-William; Leal Vizcaíno, René - 2023

We develop a theory of commodity taxation featuring imperfect competition along with love-of-variety preferences and … application. Our welfare analysis shows that the marginal excess burden of taxation is very sensitive to the estimated love …-of-variety, which can overturn classical results on the desirability of ad valorem versus specific taxation …

Persistent link: https://www.econbiz.de/10014450499

Network Effects and Technology Licensing with Fixed Fee, Royalty, and Hybrid Contracts

Lin, Lihui; Kulatilaka, Nalin - 2013

Technology innovators are faced with the question of whether to license an innovation to other firms, and if so, what type of license it should use. This question takes on paramount importance with information technology innovations that lead to new products and services that exhibit network...

Persistent link: https://www.econbiz.de/10014026662

Tax responses in platform industries

Kind, Hans Jarle; Köthenbürger, Marko; Schjelderup, … - In: Oxford economic papers 62 (2010) 4, pp. 764-783

Persistent link: https://www.econbiz.de/10008826990

Tax responses in platform industries

Kind, Hans Jarle; Köthenbürger, Marko; Schjelderup, … - 2010

Two-sided platform firms serve distinct customer groups that are connected through interdependent demand, and include major businesses such as the media industry, banking, and the software industry. A well known result of tax incidence is that consumers of a more heavily taxed good pay a higher...

Persistent link: https://www.econbiz.de/10003948351

Tax Responses in Platform Industries

Kind, Hans Jarle; Koethenbuerger, Marko; Schjelderup, … - 2010

Persistent link: https://www.econbiz.de/10014197828

Optimal income taxation under monopolistic competition

Tarasov, Alexander; Zubrickas, Robertas - 2021

Mirrlees (1971) model of income taxation with a monopolistic competition framework with general additively separable consumer … be complemented with commodity or firm taxation to achieve the constrained social optimum. We calibrate the model and …:77 percent. Motivated by practical cases, we study a policy regime that is solely based on income taxation. Under this policy …

Persistent link: https://www.econbiz.de/10012622731