Connecting People

Ali Choudhary

No 404, School of Economics Discussion Papers from School of Economics, University of Surrey

Abstract: This paper presents a model in which firms invest on their customer-networks to maintain current and future profits. The model is used to illustrate how the costs of maintaining networks and uncertainties about the customer-networks reduce the importance of making investments on the customer-based. Empirical evidence provides support for the theory.

Keywords: Network costs; Uncertainty; Pricing (search for similar items in EconPapers)
JEL-codes: D43 D80 L11 (search for similar items in EconPapers)
Pages: 11 pages
Date: 2004-07
New Economics Papers: this item is included in nep-mic, nep-net and nep-soc
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Persistent link: https://EconPapers.repec.org/RePEc:sur:surrec:0404

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