scholarly journals Dynamic pricing of network goods in duopoly markets with boundedly rational consumers

2017 ◽  
Vol 13 (1) ◽  
pp. 429-447
Author(s):  
Haiying Liu ◽  
◽  
Xinxing Luo ◽  
Wenjie Bi ◽  
Yueming Man ◽  
...  
Keyword(s):  
Dynamic Pricing ◽  
Network Goods ◽  
Duopoly Markets

Influence of strategic consumers on the network goods market

2021 ◽  
Vol 57 (4) ◽  
pp. 5
Author(s):  
Nikolai Svetlov
Keyword(s):  
Dynamic Pricing ◽  
Network Effect ◽  
Commodity Market ◽  
Strategic Consumers ◽  
Integral Effect ◽  
Goods Market ◽  
Price Growth ◽  
Modern Economic ◽  
Heterogeneous Consumers ◽  
Network Goods

One of the important trends in modern economic development is the expanding variety ofso-called network commodities. Network commodity is such a good the usefulness of which for each consumer depends on the total number of using it consumers. The purpose of the paper is to study dynamic pricing in the network commodity market with a positive network effect in the presence of two types of consumers: myopic, taking into account only the current utility of the commodity, and strategic, focused on utility for the entire period of use of the commodity. Market dynamics, including price trajectories maximizing the monopolist supplier's revenues, are established by running numerical experiments on the corresponding theoretical model. The features of this dynamics are revealed for the cases of a large share of myopic consumers and under the conditions of dominance of strategic consumers. It is demonstrated that, in contrast to the situation in the market of ordinary commodities, a monopoly supplier of the network commodity may be interested in the presence of strategic consumers in the market. The more such consumers are present, the shorter the period of warming up the market by the supplier by means of low prices and the higher the rate of the consequent price growth. Strategic consumers find themselves hostage of their own focus on the integral effect in consumption. The directions of further research of the market of network commodities with the heterogeneous consumers are presented.

scholarly journals Dynamic Pricing of Network Goods with Boundedly Rational Consumers

2006 ◽  
Author(s):  
Roy Radner ◽  
Arun Sundararajan ◽  
Ami Radunskaya
Keyword(s):  
Dynamic Pricing ◽  
Network Goods

scholarly journals THE DEFENSE OF PRICE DISCRIMINATION IN NETWORK AND INFORMATION GOODS MARKETS

2021 ◽  
Vol 24 (4) ◽  
pp. 39-55
Author(s):  
Ivan Soukal
Keyword(s):  
Price Discrimination ◽  
Dynamic Pricing ◽  
Marginal Cost ◽  
Market Failure ◽  
Economies Of Scale ◽  
Electric Energy ◽  
Information Goods ◽  
Cell Carrier ◽  
Goods Market ◽  
Network Goods

It is not uncommon that articles focused on consumer-price interaction in the network and information goods market swiftly condemn price discrimination as an obfuscation, on-purpose price complexity, or market failure. The reason is a general neoclassical rule of an efficient market where prices are set at marginal cost with no price discrimination. However, the matter is more complicated. This review provides authors an overview of why, where, and which type of price discrimination should be viewed by different optics. Goods such as software, cell carrier services, electronic newspapers subscription, electric energy supply, payment accounts, books, copyrighted content streaming, etc, cannot be treated like manufactured goods. The reasons are specific conditions – substantial and/or repeated fixed/sunk cost, economies of scale, and demand heterogeneity. Recognized economist W. J. Baumol described marginal cost set prices under these conditions as an ‘economic suicide’. Reviewed articles showed that firms are forced to adopt price discrimination in order to recover their costs and to serve more consumer segments. Reviewed authors provided facts to support the use of multipart tariffs, dynamic pricing, versioning, bundling, and Ramsey pricing. These conclusions are used for suggestions on how several studies of information and network goods should be modified. Modifications are related mostly to model assumptions and pricing conclusions. I argue that, in the case of information and network goods, there is justified price discrimination. Hence, there is a certain justified level of price complexity that has to be accepted and not taken as automated evidence of inefficiency, market power, and consumer exploitation.

scholarly journals Dynamic pricing of network goods with boundedly rational consumers

2013 ◽  
Vol 111 (1) ◽  
pp. 99-104 ◽  
Author(s):  
R. Radner ◽  
A. Radunskaya ◽  
A. Sundararajan
Keyword(s):  
Dynamic Pricing ◽  
Network Goods

Dynamic Pricing bei strategischem Konsumentenverhalten

2014 ◽  
Vol 43 (6) ◽  
pp. 292-297
Author(s):  
Jochen Gönsch ◽  
Michael Neugebauer ◽  
Claudius Steinhardt
Keyword(s):  
Dynamic Pricing
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