Dynamic price competition in aftermarkets with network effects

• Tipo: Artigo em Revista Científica Internacional
• Data: 2014

Autores

Didier Laussel (Autor) Outra; Joana Resende (Autor) FEP

Revista

Título: Journal of Mathematical Economics

Vol. 50

Páginas: 106-118

ISSN: 0304-4068

Editora: Elsevier

Indexação

ISI Web of Knowledge - 16 Citações

ISI Web of Science

Scopus - 16 Citações

Econlit

Classificação Científica

FOS: Ciências sociais > Economia e gestão

Outras Informações

ID Authenticus: P-009-7AE

DOI: 10.1016/j.jmateco.2013.10.002

Abstract (EN): This paper studies the dynamic price competition between two firms that sell horizontally differentiated durable goods and, subsequently, provide exclusive complementary goods and services to their customers. The paper analyzes how optimal pricing strategies are affected by the existence of network effects associated with the size of firms' consumer base. The interaction is thoroughly analyzed as a continuous time linear-quadratic differential game. We provide a necessary and sufficient condition for the existence of a unique duopoly equilibrium in affine strategies. When this condition holds, we show that optimal pricing strategies crucially depend on the nature of the network effects.

Idioma: Inglês

Tipo (Avaliação Docente): Científica

Nº de páginas: 13