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Negative network effects and asymmetric pure price equilibria
Portuguese Economic Journal ( IF 2.6 ) Pub Date : 2021-06-03 , DOI: 10.1007/s10258-021-00199-3
Renato Soeiro , Alberto A. Pinto

We show that in finite settings with identical firms and consumers, asymmetric pure price equilibria with positive profits exist. We consider a price competition duopoly for a homogeneous product. Demand stems from a second-stage consumption game at posted prices, with consumers’ behavior impacted by negative network effects. We characterize equilibrium prices and demand. In all subgame-perfect pure price equilibria, both firms have positive profits, and in some, firms charge different prices.



中文翻译:

负网络效应和非对称纯价格均衡

我们表明,在具有相同公司和消费者的有限环境中,存在具有正利润的不对称纯价格均衡。我们考虑同质产品的价格竞争双头垄断。需求源于公布价格的第二阶段消费博弈,消费者的行为受到负面网络效应的影响。我们描述了均衡价格和需求。在所有子博弈完美纯价格均衡中,两家公司都有正利润,并且在某些情况下,公司收取不同的价格。

更新日期:2021-06-03
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