Fulfilled-expectations Equilibria in Network Demand

Kate Adriaan Ten and Niels Gunnar ()
Additional contact information
Kate Adriaan Ten: Federal Competition Commission, Mexico
Niels Gunnar: Oxera, UK

Review of Network Economics, 2006, vol. 5, issue 3, 17

Abstract: Static demand models for homogeneous network goods give rise to fulfilled-expectations equilibrium demand (FEED) curves, which, contrary to normal demand curves, may be upward sloping at certain intervals. We analyze some, as yet unexplored, properties of the FEED curves. We spell out the one-shot non-cooperative game, the Nash equilibria of which constitute the FEED curve. We show that, in a network environment, pricing below marginal cost may be required to reach critical mass, and competition could represent an obstacle to network development rather than being its driving force.

Date: 2006
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://doi.org/10.2202/1446-9022.1100 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:rneart:v:5:y:2006:i:3:n:2

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/rne/html

DOI: 10.2202/1446-9022.1100

Access Statistics for this article

Review of Network Economics is currently edited by Lukasz Grzybowski

More articles in Review of Network Economics from De Gruyter
Bibliographic data for series maintained by Peter Golla ().