_________________________________________________________________________ In the modern theory of growth, monopoly plays a crucial role both as a cause and an effect of innovation. Innovative firms, it is argued, would have insufficient incentive to innovate should the prospect of monopoly power not be present. This theme of monopoly runs throughout the theory of growth, international trade, an...

In this paper we consider a graph optimization problem called minimum monopoly problem, in which it is required to find a minimum cardinality set S ⊆ V , such that, for each u ∈ V , |N [u] ∩ S| |N [u]|/2 in a given graph G = (V ,E). We show that this optimization problem does not have a polynomial-time approximation scheme for k-regular graphs (k 5), unless P=NP. We show this by establishing tw...

We analyze the problem of optimal monopoly pricing in social networks in order to characterize the influence of the network topology on the pricing rule. It is shown that this influence depends on the type of providers (local versus global monopoly) and of externalities (consumption versus price). We identify two situations where the monopolist does not discriminate across nodes in the network ...

A. STYLIZED MODEL........................................................................................................................................... 3 B. NETWORK PROVIDER IS MONOPOLIST IN THE MARKET FOR INTERNET SERVICES .......................................... 5 1. No General Incentive to Discriminate ......................................................................................

A Working Paper is the author's intellectual property. It is intended as a means to promote research to interested readers. Its content should not be copied or hosted on any server without written permission from [email protected] Find more INSEAD papers at We analyze two pricing mechanisms for information goods – selling, where an up-front payment allows unrestricted use by the consum...