A note on expanding networks and monopoly pricing
AbstractWe obtain explicitly the optimal path of prices for a monopolist operating in a network industry during a finite number of periods. We describe this optimal path as a function of network intensity and horizon length and show that the prices are increasing in time and that, for very low network intensity, or very high horizon length, the monopolist will offer the good at zero price in the initial period.
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Bibliographic InfoPaper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2005095.
Date of creation: 00 Jan 2005
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Other versions of this item:
- Jean J., GABSZEWICZ & Filomena, GARCIA, 2005. "A Note on Expanding Networks and Monopoly Pricing," Discussion Papers (ECON - DÃ©partement des Sciences Economiques) 2005063, Université catholique de Louvain, Département des Sciences Economiques.
- Gabszewicz, Jean, 2008. "A note on expanding networks and monopoly pricing," Open Access publications from UniversitÃ© catholique de Louvain info:hdl:2078.1/23420, Université catholique de Louvain.
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