A Note on Expanding Networks and Monopoly Pricing

Jean J. Gabszewicz, Filomena Garcia
2006 Social Science Research Network  
We obtain explicitly the optimal path of prices for a monopolist operating in a network industry during a finite number of periods. We describe this optimal path as a function of network intensity and horizon length and show that the prices are increasing in time and that, for very low network intensity, or very high horizon length, the monopolist will offer the good at zero price in the initial period. * CORE-UCL † CORE-UCL. Filomena Garcia gratefully acknowledges the financial support from
more » ... daçao Gulbenkian and CORE. The usual disclaimer applies.
doi:10.2139/ssrn.886293 fatcat:dvalh55zw5eddaowhcjttntkhy