We study pricing strategies of competing firms that sell heterogeneous products to consumers in a social network. Goods are substitutes and there are network externalities between neighboring consumers. We show that there exists a unique subgame-perfect equilibrium where, in the first stage,...

Price discrimination has raised numerous public concerns and many regulatory agencies have enacted fairness regulations on prices to curb such controversial practices. In this work, we find that, relative to non-regulation, appropriate regulation may alleviate the cut-throat price competition...