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Network markets and consumer coordination

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dc.creator Ambrus, Attila
dc.creator Argenziano, Rossella
dc.date 2004
dc.date.accessioned 2013-10-16T07:00:50Z
dc.date.available 2013-10-16T07:00:50Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/18682
dc.identifier ppn:477399150
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/18682
dc.description This paper assumes that groups of consumers in network markets can coordinate their choices when it is in their best interest to do so, and when coordination does not require communication. It is shown that multiple asymmetric networks can coexist in equilibrium if consumers have heterogeneous reservation values. A monopolist provider might choose to operate multiple networks to price differentiate consumers on both sides of the market. Competing network providers might operate networks such that one of them targets high reservation value consumers on one side of the market, while the other targets high reservation value consumers on the other side. Firms can obtain positive profits in price competition. In these asymmetric equilibria product differentiation is endogenized by the network choices of consumers. Heterogeneity of consumers is necessary for the existence of this type of equilibrium.
dc.language eng
dc.publisher
dc.relation CESifo working papers 1317
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject L10
dc.subject D62
dc.subject D43
dc.subject ddc:330
dc.subject Network Externalities
dc.subject Verbraucher
dc.subject Koordination
dc.subject Monopol
dc.subject Duopol
dc.subject Theorie
dc.title Network markets and consumer coordination
dc.type doc-type:workingPaper


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