Optimal Pricing with Network Externalities
J. Doornenbal
Abstract
J. Doornenbal
Abstract
In this paper the influence of network externalities on pricing will be reviewed. In case of two firms in two periods, network externalities can influence the bandwagon if there is no price discrimination and can influence the price in both ways. If there are strong network externalities the price will increase and decrease if the network externalities are weak.
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In this paper the influence of network externalities on pricing will be reviewed. In case of two firms in two periods, network externalities can influence the bandwagon if there is no price discrimination and can influence the price in both ways. If there are strong network externalities the price will increase and decrease if the network externalities are weak.
Key concepts: Economics, Externality, Computer science, Business, Actuarial science, Microeconomics