Income Distribution in Network Markets

Corrado Benassi and Marcella Scrimitore

Working Paper series from Rimini Centre for Economic Analysis

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 (search for similar items in EconPapers)
JEL-codes: D31 D40 L1 (search for similar items in EconPapers)
Date: 2013-01
New Economics Papers: this item is included in nep-com and nep-net
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.rcea.org/RePEc/pdf/wp13_13.pdf (application/pdf)

Related works:
Journal Article: Income Distribution in Network Markets (2017)
Working Paper: Income Distribution in Network Markets (2015)
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:rim:rimwps:13_13

Access Statistics for this paper

More papers in Working Paper series from Rimini Centre for Economic Analysis Contact information at EDIRC.
Bibliographic data for series maintained by Marco Savioli ().