Income Distribution in Network Markets

Arbeitspapier

We enquiry about the effects of first and second order stochastic dominance shifts of the distribution of the consumers’ willingness to pay, within the standard model of a market with network externalities and hump-shaped demand curve. This issue is analyzed in the polar cases of perfect competition and monopoly. We find that, while under perfect competition both types of distributional changes result in higher output, provided marginal costs are low enough, in the monopoly case the final outcome depends on the way income distribution and the network externality interact in determining market demand elasticity.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: EERI Research Paper Series ; No. 05/2015

Classification and Topics

• Classification: Wirtschaft ; Personal Income, Wealth, and Their Distributions ; Market Structure, Pricing, and Design: General
• Subject: Network externalities ; income distribution ; stochastic dominance

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Benassi, Corrado ; Scrimitore, Marcella
• Event: Veröffentlichung
• (who): Economics and Econometrics Research Institute (EERI)
• (where): Brussels
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/142679
• Last update: 10.03.2025, 11:43 AM CET