Network Effects

Takanori Adachi, Ryo Hashizume (), Takeshi Ikeda (), Tatsuhiko Nariu () and Tomohisa Okada ()
Additional contact information
Ryo Hashizume: Hannan University
Takeshi Ikeda: Daito Bunka University
Tatsuhiko Nariu: Doshisha University
Tomohisa Okada: Daito Bunka University

Chapter Chapter 2 in Recent Advances in the Theory of Third-Degree Price Discrimination, 2023, pp 15-28 from Springer

Abstract: Abstract This chapter studies third-degree price discrimination in the presence of network effects. First, we review related studies and show that the presence or absence of network effects significantly impacts the welfare effects of price discrimination. Additionally, we demonstrate the importance of clarifying the form of network effects (i.e., within-market network effects or cross-market network effects). Further, we show that in the presence of network effects, price discrimination can decrease consumer surplus in all markets, although the price in one market falls.

Keywords: Third-degree price discrimination; Within-market network effects; Cross-market network effects; Welfare effects; Consumer surplus (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:spbchp:978-981-99-3205-4_2

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DOI: 10.1007/978-981-99-3205-4_2

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