The Value of Network Information: Assortative Mixing Makes the Difference

Mohamed Belhaj () and Frédéric Deroïan ()

No 1618, AMSE Working Papers from Aix-Marseille School of Economics, France

Abstract: We study the value of network information in a context of monopoly pricing in the presence of local network externalities. We compare a setting in which all players, i.e. the monopoly and consumers, know the network structure and consumers' private preferences with a setting in which players only know the joint distribution of preferences, in-degrees and out-degrees. We give conditions under which network information increases profit or/and consumer surplus. The analysis reveals the crucial role played by four properties: degree assortativity, homophily (in preferences), preference-degree assortativity and preference-Bonacich centrality assortativity.

Keywords: Monopoly; Network Effects; Price Discrimination; Bonacich Centrality; Network Information; Degree Assortativity; Homophily; Preference-Degree Assortativity; Preference-Bonacich Centrality Assortativity. (search for similar items in EconPapers)
JEL-codes: C72 D85 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2016-05-11, Revised 2016-05-11
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.amse-aixmarseille.fr/sites/default/file ... rmat:Application/pdf
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.amse-aixmarseille.fr/sites/default/files/_dt/2012/wp_2016_-_nr_18.pdfFile-Format:Application/pdf [302 Found]--> https://www.amse-aixmarseille.fr/sites/default/files/_dt/2012/wp_2016_-_nr_18.pdfFile-Format:Application/pdf [301 Moved Permanently]--> https://www.amse-aixmarseille.fr/fr/sites/default/files/_dt/2012/wp_2016_-_nr_18.pdfFile-Format%3AApplication/pdf)

Related works:
Working Paper: The value of network information: Assortative mixing makes the difference (2021)
Working Paper: The Value of Network Information: Assortative Mixing Makes the Difference (2016)
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:aim:wpaimx:1618

Access Statistics for this paper

More papers in AMSE Working Papers from Aix-Marseille School of Economics, France AMU-AMSE - 5-9 Boulevard Maurice Bourdet, CS 50498 - 13205 Marseille Cedex 1. Contact information at EDIRC.
Bibliographic data for series maintained by Gregory Cornu ().