Arbeitspapier
Network Externalities in a Dynamic Monopoly
We reconsider the role of network externalities in a dynamic spatial monopoly where the firm must invest in order to accumulate capacity, while consumers may have either linear or quadratic preferences. We (i) characterize saddle poin equilibria, (ii) prove that the extent of market coverage is increasing in the network effect and (iii) unlike the existing static literature on the same problem, the monopolixt may not make introductory price offers. Then, we briefly dea with the socially optimal solution, showing that, in general, a planner would serve more consumers than a profit-seaking monopolist.
- Language
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Englisch
- Bibliographic citation
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Series: Quaderni - Working Paper DSE ; No. 452
- Classification
-
Wirtschaft
- Event
-
Geistige Schöpfung
- (who)
-
Orsini, Raimondello
Lambertini, Luca
- Event
-
Veröffentlichung
- (who)
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Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)
- (where)
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Bologna
- (when)
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2002
- DOI
-
doi:10.6092/unibo/amsacta/4843
- Handle
- Last update
-
10.03.2025, 11:41 AM CET
Data provider
This object is provided by:
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Orsini, Raimondello
- Lambertini, Luca
- Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)
Time of origin
- 2002
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