We develop a model of pricing and advertising for e-commerce. N identical sellers, selling an homogeneous product, each choose a price and a web-based advertising policy. Buyers have usual demand functions and search optimally on the Internet. A Symmetric Nash Equilibrium (SNE) is derived and...

This paper studies social learning and optimal pricing in the presence of location-based social networks, such as Foursquare. We provide an analytic model to resolve the following questions: (1) What is the optimal pricing strategy in location-based networks? (2) How do different pricing...

The increasing pervasiveness of social networks allows users to share purchase behaviors with their online friends. In the present study, we examine optimal pricing strategies of a monopolistic firm using an analytical model that accounts for behavioral observational learning in social networks....