We present a model of dynamic monopoly pricing for a good that displays network effects. In contrast with the standard notion of a rational-expectations equilibrium, we model consumers as boundedly rational, and unable either to pay immediate attention to each price change, or to make accurate...

We present a model of dynamic monopoly pricing for a good that displaysnetwork effects. In contrast with the standard notion of arational-expectations equilibrium, we model consumers as boundedlyrational, and unable either to pay immediate attention to each pricechange, or to make accurate...

We characterize the optimal dynamic price policy of a monopolist who faces quot;viscousquot;demand for its services. Demand is viscous if it adjusts relatively slowly to price changes.We show that with the optimal policy the monopolist stops short of achieving 100% marketpenetration, even when...

The 'Savage paradigm' of rational decision-making under uncertainty has become the dominant model of human behavior in mainstream economics and game theory. However, under the rubric of 'bounded-rationality', this model has been criticized as inadequate from both normative and descriptive...