Arbeitspapier

Screening Contracts in the Presence of Positive Network Effects

Based on the critical assumption of strategic complementarity, this paper builds a general model to describe and solve the screening problem faced by the monopolist seller of a network good. By applying monotone comparative static tools, we demonstrate that the joint presence of asymmetric information and positive network effects leads to a strict downward distortion for all consumers in the quantities provided. We also show that the equilibrium allocation is an increasing function of the intensity of network effects, and that a discriminating monopoly may supply large quantities for all consumers than a competitive industry.

Sprache
Englisch

Erschienen in
Series: IEHAS Discussion Papers ; No. MT-DP - 2004/14

Klassifikation
Wirtschaft
Market Structure, Pricing, and Design: Monopoly
Externalities
Asymmetric and Private Information; Mechanism Design
Monopoly; Monopolization Strategies
Thema
network effects
strategic complementarities
contracting with externalities
second-degree discrimination
monotone comparative statics

Ereignis
Geistige Schöpfung
(wer)
Csorba, Gergely
Ereignis
Veröffentlichung
(wer)
Hungarian Academy of Sciences, Institute of Economics
(wo)
Budapest
(wann)
2004

Handle
Letzte Aktualisierung
10.03.2025, 11:46 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Csorba, Gergely
  • Hungarian Academy of Sciences, Institute of Economics

Entstanden

  • 2004

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