Negative network effects and asymmetric pure price equilibria

• Tipo: Artigo em Revista Científica Internacional
• Data: 2023

Autores

Soeiro, R (Autor) FEUP; Alberto A. Pinto (Autor) FCUP

Revista

Título: Portuguese Economic Journal

Vol. 22

Páginas: 99-124

ISSN: 1617-982X

Editora: Springer Nature

Indexação

ISI Web of Knowledge - 1 Citação

Scopus - 1 Citação

Outras Informações

ID Authenticus: P-00V-1FJ

DOI: 10.1007/s10258-021-00199-3

Abstract (EN): We show that in finite settings with identical firms and consumers, asymmetric pure price equilibria with positive profits exist. We consider a price competition duopoly for a homogeneous product. Demand stems from a second-stage consumption game at posted prices, with consumers' behavior impacted by negative network effects. We characterize equilibrium prices and demand. In all subgame-perfect pure price equilibria, both firms have positive profits, and in some, firms charge different prices.

Idioma: Inglês

Tipo (Avaliação Docente): Científica

Nº de páginas: 26