Negative network effects and asymmetric pure price equilibria

Detalhes bibliográficos
Autor(a) principal: Soeiro, Renato
Data de Publicação: 2023
Outros Autores: Pinto, Alberto A.
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10400.5/27702
Resumo: We show that in finite settings with identical firms and consumers, asymmetric pure price equilibria with positive profits exist. We consider a price competition duopoly for a homogeneous product. Demand stems from a second-stage consumption game at posted prices, with consumers’ behavior impacted by negative network effects. We characterize equilibrium prices and demand. In all subgame-perfect pure price equilibria, both firms have positive profits, and in some, firms charge different prices.
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spelling Negative network effects and asymmetric pure price equilibriaBertrand duopolyPure price equilibriumHomogeneous goodsPrice dispersionNetwork effectsWe show that in finite settings with identical firms and consumers, asymmetric pure price equilibria with positive profits exist. We consider a price competition duopoly for a homogeneous product. Demand stems from a second-stage consumption game at posted prices, with consumers’ behavior impacted by negative network effects. We characterize equilibrium prices and demand. In all subgame-perfect pure price equilibria, both firms have positive profits, and in some, firms charge different prices.SpringerRepositório da Universidade de LisboaSoeiro, RenatoPinto, Alberto A.2023-05-04T09:47:17Z20232023-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.5/27702engSoeiro, Renato e Alberto A. Pinto (2023). "Negative network effects and asymmetric pure price equilibria". Portuguese Economic Journal, 22(1):99-124. https://doi.org/10.1007/s10258-021-00199-31617-982X10.1007/s10258-021-00199-3metadata only accessinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-05-07T01:31:00Zoai:www.repository.utl.pt:10400.5/27702Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T17:50:57.914372Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv Negative network effects and asymmetric pure price equilibria
title Negative network effects and asymmetric pure price equilibria
spellingShingle Negative network effects and asymmetric pure price equilibria
Soeiro, Renato
Bertrand duopoly
Pure price equilibrium
Homogeneous goods
Price dispersion
Network effects
title_short Negative network effects and asymmetric pure price equilibria
title_full Negative network effects and asymmetric pure price equilibria
title_fullStr Negative network effects and asymmetric pure price equilibria
title_full_unstemmed Negative network effects and asymmetric pure price equilibria
title_sort Negative network effects and asymmetric pure price equilibria
author Soeiro, Renato
author_facet Soeiro, Renato
Pinto, Alberto A.
author_role author
author2 Pinto, Alberto A.
author2_role author
dc.contributor.none.fl_str_mv Repositório da Universidade de Lisboa
dc.contributor.author.fl_str_mv Soeiro, Renato
Pinto, Alberto A.
dc.subject.por.fl_str_mv Bertrand duopoly
Pure price equilibrium
Homogeneous goods
Price dispersion
Network effects
topic Bertrand duopoly
Pure price equilibrium
Homogeneous goods
Price dispersion
Network effects
description We show that in finite settings with identical firms and consumers, asymmetric pure price equilibria with positive profits exist. We consider a price competition duopoly for a homogeneous product. Demand stems from a second-stage consumption game at posted prices, with consumers’ behavior impacted by negative network effects. We characterize equilibrium prices and demand. In all subgame-perfect pure price equilibria, both firms have positive profits, and in some, firms charge different prices.
publishDate 2023
dc.date.none.fl_str_mv 2023-05-04T09:47:17Z
2023
2023-01-01T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10400.5/27702
url http://hdl.handle.net/10400.5/27702
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv Soeiro, Renato e Alberto A. Pinto (2023). "Negative network effects and asymmetric pure price equilibria". Portuguese Economic Journal, 22(1):99-124. https://doi.org/10.1007/s10258-021-00199-3
1617-982X
10.1007/s10258-021-00199-3
dc.rights.driver.fl_str_mv metadata only access
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eu_rights_str_mv openAccess
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dc.publisher.none.fl_str_mv Springer
publisher.none.fl_str_mv Springer
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
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