A note on expanding networks and monopoly pricing
Abstract
We 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.Download Info
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Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2005095.Length:
Date of creation: 00 Jan 2005
Date of revision:
Handle: RePEc:cor:louvco:2005095
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Keywords:Other versions of this item:
- Gabszewicz, Jean J. & Garcia, Filomena, 2008. "A note on expanding networks and monopoly pricing," Economics Letters, Elsevier, vol. 98(1), pages 9-15, January.
- Jean J., GABSZEWICZ & Filomena, GARCIA, 2005. "A Note on Expanding Networks and Monopoly Pricing," Discussion Papers (ECON - Département 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 Université catholique de Louvain info:hdl:2078.1/23420, Université catholique de Louvain.
References
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Rabah Amir & Natalia Lazzati, 2009.
"Network Effects, Market Structure and Industry Performance,"
Working Papers
09-27, NET Institute.
- Amir, Rabah & Lazzati, Natalia, 2011. "Network effects, market structure and industry performance," Journal of Economic Theory, Elsevier, vol. 146(6), pages 2389-2419.
- Rabah Amir & Natalia Lazzati, 2010. "Network Effects, Market Structure and Industry Performance," CREA Discussion Paper Series 10-16, Center for Research in Economic Analysis, University of Luxembourg.
- Amir, Rabah & Lazzati, Natalia, 2010. "Network effects, market structure and industry performance," Discussion Papers, Research Unit: Market Behavior SP II 2010-12, Social Science Research Center Berlin (WZB).
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