Competitive pricing strategies in social networks.
Abstract: We study pricing strategies of competing firms selling heterogeneous products to consumers. Goods are substitutes and there are network externalities between neighboring consumers. In equilibrium, firms price discriminate based on the network positions and charge lower prices to more centr...
| Publicado en: | RAND Journal of Economics (Wiley-Blackwell) Vol. 49; no. 3; pp. 672 - 706 |
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| Autores principales: | , , |
| Formato: | Artículo |
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Wiley-Blackwell
Fall2018
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=131408123&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 131408123 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 07416261 56RJ jtl: RAND Journal of Economics (Wiley-Blackwell) issn: 07416261 maglogo: Y pubinfo: dt: Fall2018 vid: 49 iid: 3 pid: 480 pub: Wiley-Blackwell artinfo: ui: 131408123 10.1111/1756-2171.12249 ppf: 672 ppct: 34 formats: fmt: – @attributes: type: T – @attributes: type: P size: 1.3MB tig: atl: Competitive pricing strategies in social networks. aug: au: Chen, Ying‐Ju Zenou, Yves Zhou, Junjie affil: The Hong Kong University of Science and Technology Monash University, IFN, and CEPR National University of Singapore su: Social networks Economic competition Externalities Economic equilibrium Consumers Pricing Corporate profits sug: subj: Social networks Economic competition Externalities Economic equilibrium Consumers Other Individual and Family Services Pricing Corporate profits ab: Abstract: We study pricing strategies of competing firms selling heterogeneous products to consumers. Goods are substitutes and there are network externalities between neighboring consumers. In equilibrium, firms price discriminate based on the network positions and charge lower prices to more central consumers. We also show that, under some conditions, firms' equilibrium profits decrease when either the network becomes denser or network effects increase. In contrast, consumers always benefit from being more connected to each other. We determine the optimal network structure and compare uniform pricing and discriminatory pricing from the perspectives of firms and consumers. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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