A Note on Expanding Networks and Monopoly Pricing

Jean Gabszewicz () and Filomena Garcia ()

No 2005063, Discussion Papers (ECON - Département des Sciences Economiques) from Université catholique de Louvain, Département des Sciences Economiques

Abstract: We obtain explicitly the optimal path of prices for a monopolist operating in a network industry during a finite number of periods. We describe this optimal path as a function of network intensity and horizon length and show that the prices are increasing in time and that, for very low network intensity, or very high horizon length, the monopolist will offer the good at zero price in the initial period.

New Economics Papers: this item is included in nep-com, nep-gth, nep-ind, nep-mic and nep-net
Date: 2005-12-15
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Related works:
Working Paper: A note on expanding networks and monopoly pricing (2005)
Journal Article: A note on expanding networks and monopoly pricing (2008)
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Persistent link: http://EconPapers.repec.org/RePEc:ctl:louvec:2005063

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