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Author (up) Harrison, R.; Hernandez, G.; Munoz, R. doi  openurl
  Title A discrete model of market interaction in the presence of social networks and price discrimination Type Journal Article
  Year 2019 Publication Mathematical Social Sciences Abbreviated Journal Math. Soc. Sci.  
  Volume 102 Issue Pages 48-58  
  Keywords Social networks; Agent-based models; Price discrimination  
  Abstract In this paper, we provide a model to study the equilibrium outcome in a market characterized by the competition between two firms offering horizontally differentiated services, in a context where consumers are the basic unit of decision on the demand side and are related through a social network. In the model, we consider that consumers make optimal choice, participation and consumption decisions, while firms optimally decide their tariffs, eventually using nonlinear pricing schemes. This approach permits us to identify and model two different kinds of network externalities, one associated with tariff-mediated network externalities and the other related to participation network externalities. We apply the model to the telecommunication industry, where we study the impact of alternative regulatory interventions. We provide numerical evidence suggesting that policies designed to reduce horizontal differentiation might be more effective than those designed to limit access charges; this result seems robust to the presence of different forms of price discrimination. We should interpret these findings cautiously due to the existence of potential implementation costs for each policy. (C) 2019 Elsevier B.V. All rights reserved.  
  Address [Harrison, Rodrigo] Univ Adolfo Ibanez, Fac Ingn & Ciencias, Santiago, Chile, Email: rodrigo.harrison@uai.cl;  
  Corporate Author Thesis  
  Publisher Elsevier Place of Publication Editor  
  Language English Summary Language Original Title  
  Series Editor Series Title Abbreviated Series Title  
  Series Volume Series Issue Edition  
  ISSN 0165-4896 ISBN Medium  
  Area Expedition Conference  
  Notes WOS:000500049400006 Approved no  
  Call Number UAI @ eduardo.moreno @ Serial 1077  
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