Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5059426 | Economics Letters | 2014 | 8 Pages |
Abstract
We analyze dynamic monopoly pricing under consumption externalities, focusing on pricing under negative externalities. We also attempt to generalize models in the previous literature, which encompass both negative and positive externalities, by incorporating a consumer's discount factor for past sales as a parameter. Analyzing our model reveals oscillation as the optimal price path in the presence of negative externalities.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Kaito Hashimoto, Nobuo Matsubayashi,