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International Workshop on Internet and Network Economics

WINE 2008: Internet and Network Economics pp 724–731Cite as

Nonlinear Pricing with Network Externalities

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Part of the book series: Lecture Notes in Computer Science ((LNISA,volume 5385))

Abstract

This paper considers the screening problem faced by a monopolist of a network good in a general setting. We fully characterize the optimal contracts in the joint presence of network externalities and asymmetric information about agents’ types. We find that the pattern of consumption distortion crucially depends on the degree of network congestability. It is shown that an optimal consumption scheme exhibits a two-way distortion, no distortion on the top, or one-way distortion if and only if network is congestible, neutral-congestible or discongestible.

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References

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Author information

Authors and Affiliations

  1. International Trade Research Center, Shanghai Institute of Foreign Trade, Shanghai, 201600, P.R. China

    Dawen Meng

  2. Department of Economics, Texas A&M University, College Station, Texas, 77843, USA

    Guoqiang Tian

  3. Shanghai University of Finance and Economics, Shanghai, 200433, P.R. China

    Dawen Meng, Guoqiang Tian & Lei Sun

Authors
  1. Dawen Meng
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  2. Guoqiang Tian
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  3. Lei Sun
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Editor information

Editors and Affiliations

  1. Computer Science Division, University of California at Berkeley, Berkeley, CA, USA

    Christos Papadimitriou

  2. Department of Systems Engineering and Engineering Management, The Chinese University of Hong Kong, Shatin, N.T., Hong Kong

    Shuzhong Zhang

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© 2008 Springer-Verlag Berlin Heidelberg

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Cite this paper

Meng, D., Tian, G., Sun, L. (2008). Nonlinear Pricing with Network Externalities. In: Papadimitriou, C., Zhang, S. (eds) Internet and Network Economics. WINE 2008. Lecture Notes in Computer Science, vol 5385. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-92185-1_78

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  • DOI: https://doi.org/10.1007/978-3-540-92185-1_78

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-540-92184-4

  • Online ISBN: 978-3-540-92185-1

  • eBook Packages: Computer ScienceComputer Science (R0)

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