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Profit and Non-Profit Maximising Network Density, Membership Fees and Service in Monopolistic and Duopolistic Framework

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Abstract

Network density, membership fees and service are analytically related to factors such as the size of the target population, the distribution of ability to enjoy the networl's service within target population, the tax-regbate on membership payment, the service production costs, which are increased by congestion or reduced by agglomeration, and the network organisational costs. The analysis is conducted for the case of budget-balancing and density-targeting networks.

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File URL: http://www.uow.edu.au/content/groups/public/@web/@commerce/@econ/documents/doc/uow012250.pdf
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Paper provided by School of Economics, University of Wollongong, NSW, Australia in its series Economics Working Papers with number wp99-2.

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Length: 21 pages
Date of creation: 1999
Date of revision:
Handle: RePEc:uow:depec1:wp99-2

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Postal: School of Economics, University of Wollongong, Northfields Avenue, Wollongong NSW 2522 Australia
Phone: +612 4221-3659
Fax: +612 4221-3725
Web page: http://business.uow.edu.au/econ/index.html
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Keywords: ENTERPRISES ; INDUSTRY ; MEMBERSHIP;

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  1. McDonald, Ian M & Suen, Anthony, 1992. "On the Measurement and Determination of Trade Union Power," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 54(2), pages 209-24, May.
  2. Dutta, Bhaskar & Mutuswami, Suresh, 1997. "Stable Networks," Journal of Economic Theory, Elsevier, vol. 76(2), pages 322-344, October.
    • Dutta, Bhaskar & Mutuswami, Suresh, 1996. "Stable Networks," Working Papers 971, California Institute of Technology, Division of the Humanities and Social Sciences.
  3. Cohen, Daniel R. & Zilberman, David, 1997. "Actual Versus Stated Willingness To Pay: A Comment," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 22(02), December.
  4. Matthew O. Jackson & Asher Wolinsky, 1995. "A Strategic Model of Social and Economic Networks," Discussion Papers 1098R, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  5. Levy, Amnon, 1998. "A Theoretical Analysis of Trade Union Membership Fees, Bargaining Power, Wage Rate and Unemployment," Australian Economic Papers, Wiley Blackwell, vol. 37(4), pages 404-13, December.
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