Income Distribution in Network Markets
Corrado Benassi and
Marcella Scrimitore ()
Journal of Industry, Competition and Trade, 2017, vol. 17, issue 3, 251-271
Abstract We enquiry about the effects of first and second order stochastic dominance shifts of the distribution of the consumers’ willingness to pay, within the standard model of a market with network externalities and hump-shaped demand curve. This issue is analyzed in the polar cases of perfect competition and monopoly. We find that, while under perfect competition both types of distributional changes result in higher output, provided marginal costs are low enough, in the monopoly case the final outcome depends on the way income distribution and the network externality interact in determining market demand elasticity.
Keywords: Network externalities; Income distribution; Stochastic dominance; Market demand elasticity (search for similar items in EconPapers)
JEL-codes: D31 D40 L1 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s10842-016-0236-x Abstract (text/html)
Access to full text is restricted to subscribers.
Working Paper: Income Distribution in Network Markets (2015)
Working Paper: Income Distribution in Network Markets (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:kap:jincot:v:17:y:2017:i:3:d:10.1007_s10842-016-0236-x
Ordering information: This journal article can be ordered from
http://www.springer. ... on/journal/10842/PS2
Access Statistics for this article
Journal of Industry, Competition and Trade is currently edited by Karl Aiginger, Marcel Canoy and Michael Peneder
More articles in Journal of Industry, Competition and Trade from Springer
Bibliographic data for series maintained by Sonal Shukla ().