A note on dynamic monopoly pricing under consumption externalities

Kaito Hashimoto and Nobuo Matsubayashi

Economics Letters, 2014, vol. 124, issue 1, 1-8

Abstract: We analyze dynamic monopoly pricing under consumption externalities, focusing on pricing under negative externalities. We also attempt to generalize models in the previous literature, which encompass both negative and positive externalities, by incorporating a consumer’s discount factor for past sales as a parameter. Analyzing our model reveals oscillation as the optimal price path in the presence of negative externalities.

Keywords: Monopoly pricing; Consumption externalities; Snob effect; Congestion pricing (search for similar items in EconPapers)
JEL-codes: D42 L12 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:124:y:2014:i:1:p:1-8

DOI: 10.1016/j.econlet.2014.04.007

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