A note on dynamic monopoly pricing under consumption externalities

Kaito Hashimoto, Nobuo Matsubayashi

Research output: Contribution to journalArticle

1 Citation (Scopus)

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.

Original languageEnglish
Pages (from-to)1-8
Number of pages8
JournalEconomics Letters
Volume124
Issue number1
DOIs
Publication statusPublished - 2014

Fingerprint

Consumption externalities
Negative externalities
Monopoly pricing
Discount factor
Positive externalities
Pricing
Oscillation

Keywords

  • Congestion pricing
  • Consumption externalities
  • Monopoly pricing
  • Snob effect

ASJC Scopus subject areas

  • Economics and Econometrics
  • Finance

Cite this

A note on dynamic monopoly pricing under consumption externalities. / Hashimoto, Kaito; Matsubayashi, Nobuo.

In: Economics Letters, Vol. 124, No. 1, 2014, p. 1-8.

Research output: Contribution to journalArticle

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