Durable-Goods Monopolists, Network Effects and Penetration Pricing

Preprint OPEN
Cyrus C.Y. Chu; Hung-Ken Chien;
(2005)
  • Subject: Penetration pricing, network externality
    • jel: jel:L1 | jel:L11

We study the pricing problem of a durable-goods monopolist. With network effects, consumption externalities among heterogeneous groups of consumers generate a discontinuous demand function. Consequently, the lessor has to offer a low price in order to reach the mass mar... View more
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