Monopoly Sale of a Network Good
AbstractThis paper studies the problem of a monopolist who sells a network good through a price posting scheme. The scheme posts a price of every possible allocation for each buyer, who are then asked to report their private information to the seller. The seller then implements the allocation based on the reports. The social choice functions that are ex post implementable through such a sales scheme are characterized, and the conditions are identified under which the revenue maximizing scheme has the property that the price of a larger network is more affordable than that of a smaller network.
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Bibliographic InfoPaper provided by Institute of Social and Economic Research, Osaka University in its series ISER Discussion Paper with number 0794.
Date of creation: Sep 2010
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-10-23 (All new papers)
- NEP-COM-2010-10-23 (Industrial Competition)
- NEP-CTA-2010-10-23 (Contract Theory & Applications)
- NEP-NET-2010-10-23 (Network Economics)
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