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...

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Bibliographic Details

Published in:	RAND Journal of Economics (Wiley-Blackwell) Vol. 49; no. 3; pp. 672 - 706
Main Authors:	Chen, Ying‐Ju, Zenou, Yves, Zhou, Junjie
Format:	Article
Published:	Wiley-Blackwell Fall2018
Subjects:	Social networks Economic competition Externalities Economic equilibrium Consumers Pricing Corporate profits
Online Access:	View this record in EBSCOhost