Managing Consumer Referrals in a Chain Network

Preprint OPEN
Maria Arbatskaya; Hideo Konishi;
  • Subject: communication network, consumer referral policy, referral fee, price discrimination
    • jel: jel:D4 | jel:L1 | jel:D8

We consider the optimal pricing and referral strategy of a monopoly that uses a simple consumer communication network (a chain) to spread product information. The first-best policy with fully discriminatory position-based referral fees involves standard monopoly pricing... View more
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