Pricing Strategies of Goods with Externalities

摘要: This paper summarizes the effects of social influences in a monopoly market with heterogeneous agents. The equilibria are presented limiting case global influence. Considering static profit maximization there may exist two different regimes: to sell either large fraction customers at low price, or small them higher price. arises for numerous mono-modal distributions idiosyncratic willingness pay if influence is strong enough. seller's optimal strategy switches from one regime other parameter values where demand has Nash equilibria; but posting prices attract fractions buyers fail due lack coordination.