Pricing Network Effects
نویسندگان
چکیده
منابع مشابه
Pricing of Complements and Network Effects
We discuss the case of a monopolist of a base good in the presence of a complementary good provided either by it or by another firm. We assess and calibrate the extent of the influence on the profits from the base good that is created by the existence of the complementary good. We establish an equivalence between a model of a base and a complementary good and a reduced-form model of the base go...
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Network effects can reduce consumption levels across customers when a monopolist chooses optimal nonlinear pricing. The direction and extent of these distortions depend on the relative rates of variation in marginal intrinsic value and marginal network value with customer type. D 2004 Elsevier B.V. All rights reserved.
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In markets with network effects, users must form expectations about the total number of users who join a given platform. In this paper, we distinguish two ways in which rational expectations can be formed, which correspond to two different types of users—sophisticated and unsophisticated. Only sophisticated users adjust their expectations in response to platforms’ price changes. We study the ef...
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A number of products that display positive network effects are used in variable quantities by heterogeneous customers. Examples include corporate operating systems, infrastructure software, web services and networking equipment. In many of these contexts, the magnitude of network effects are influenced by gross consumption, rather than simply by user base. Moreover, the value an individual cust...
متن کاملPricing of Complementary Goods and Network Effects
We discuss the case of a monopolist of a base good in the presence of complementary goods provided either by it or by other firms. We assess and calibrate the extent of the influence on the profits from the base good that is created by the existence of complementary goods, i.e., the extent of the network effect. We establish an equivalence between a model of a base and a complementary good and ...
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ژورنال
عنوان ژورنال: The Review of Economic Studies
سال: 2015
ISSN: 0034-6527,1467-937X
DOI: 10.1093/restud/rdv032