Pricing in social networks

@article{Bloch2013PricingIS,
  title={Pricing in social networks},
  author={Francis Bloch and Nicolas Qu{\'e}rou},
  journal={Games and Economic Behavior},
  year={2013},
  volume={80},
  pages={243-261}
}
We analyze the problem of optimal monopoly pricing in social networks in order to characterize the influence of the network topology on the pricing rule. It is shown that this influence depends on the type of providers (local versus global monopoly) and of externalities (consumption versus price). We identify two situations where the monopolist does not discriminate across nodes in the network (global monopoly with consumption externalities and local monopoly with price externalities) and… CONTINUE READING
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