A note on dynamic monopoly pricing under consumption externalities

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.

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Year of publication:	2014
Authors:	Hashimoto, Kaito ; Matsubayashi, Nobuo
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 124.2014, 1, p. 1-8
Publisher:	Elsevier
Subject:	Monopoly pricing \| Consumption externalities \| Snob effect \| Congestion pricing

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Type of publication:	Article
Classification:	D42 - Monopoly ; L12 - Monopoly; Monopolization Strategies
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010784987