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, Département des Sciences Economiques in its series Discussion Papers (ECON - Département des Sciences Economiques) with number 2005063.
Date of creation: 01 Dec 2005
Date of revision:
Other versions of this item:
- NEP-ALL-2006-03-25 (All new papers)
- NEP-COM-2006-03-25 (Industrial Competition)
- NEP-GTH-2006-03-25 (Game Theory)
- NEP-IND-2006-03-25 (Industrial Organization)
- NEP-MIC-2006-03-25 (Microeconomics)
- NEP-NET-2006-03-25 (Network Economics)
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