• Corpus ID: 238634382

Group network effects in price competition

  title={Group network effects in price competition},
  author={Renato Soeiro and Alberto Pinto},
The partition of society into groups, polarization, and social networks are part of most conversations today. How do they influence price competition? We discuss Bertrand duopoly equilibria with demand subject to network effects. Contrary to models where network effects depend on one aggregate variable (demand for each choice), partitioning the dependence into groups creates a wealth of pure price equilibria with profit for both price setters, even if positive network effects are the dominant… 

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