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Author: Euncheol Shin
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
I present a new model of optimal dynamic pricing and diffusion of a network good sold by a monopolist. The good in this model is a social network good in that each consumer's value of the good within a social network increases as more of her neighbors use the good. In each period, the monopolist sets a subscription price and consumers myopically optimize their choices after comparing the overall adoption and the current subscription price. Thus, in contrast with one-sided diffusion models in the social network literature, the diffusion process arises as an equilibrium behavior of both the monopolist and consumers. As a result, I characterize a unique equilibrium, in which the diffusion process stays at a certain point. The equilibrium is efficient in that it involves the highest adoption rate with respect to the equilibrium subscription price. I also present the deadweight loss in the equilibrium and show how it depends on the connectivity of the underlying social network.
Author: Euncheol Shin
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
I present a new model of optimal dynamic pricing and diffusion of a network good sold by a monopolist. The good in this model is a social network good in that each consumer's value of the good within a social network increases as more of her neighbors use the good. In each period, the monopolist sets a subscription price and consumers myopically optimize their choices after comparing the overall adoption and the current subscription price. Thus, in contrast with one-sided diffusion models in the social network literature, the diffusion process arises as an equilibrium behavior of both the monopolist and consumers. As a result, I characterize a unique equilibrium, in which the diffusion process stays at a certain point. The equilibrium is efficient in that it involves the highest adoption rate with respect to the equilibrium subscription price. I also present the deadweight loss in the equilibrium and show how it depends on the connectivity of the underlying social network.
Author: Pekka Sääskilahti
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
We analyse the roles of network connectivity and topology on the monopoly pricing of network goods which enable social interaction between consumers. Connectivity between network members induces the well-known network externalities effect, while the topological effect is caused by the incompleteness of the social network's linkage, and it has not been previously recognised in this context. We find that the topological effect counteracts, and dominates, the connectivity effect by reducing the monopoly's capacity to extract consumer surplus. Our results are seen to hold in real cases of social network businesses. The monopolist benefits from price discrimination based on consumers' social connections, but this has a social cost as consumer surplus loss is higher than the increase in profits, with the highly connected consumers being the primary losers. Therefore, privacy policies restricting excessive social profiling and tracking can have an antitrust role too. Our approach also extends the theory of multi-sided markets in relation to the underlying relations graph of different market sides.
Author: Yann Bramoullé
Publisher: Oxford University Press
ISBN: 0190216832
Category : Business & Economics
Languages : en
Pages : 857
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Book Description
The Oxford Handbook of the Economics of Networks represents the frontier of research into how and why networks they form, how they influence behavior, how they help govern outcomes in an interactive world, and how they shape collective decision making, opinion formation, and diffusion dynamics. From a methodological perspective, the contributors to this volume devote attention to theory, field experiments, laboratory experiments, and econometrics. Theoretical work in network formation, games played on networks, repeated games, and the interaction between linking and behavior is synthesized. A number of chapters are devoted to studying social process mediated by networks. Topics here include opinion formation, diffusion of information and disease, and learning. There are also chapters devoted to financial contagion and systemic risk, motivated in part by the recent financial crises. Another section discusses communities, with applications including social trust, favor exchange, and social collateral; the importance of communities for migration patterns; and the role that networks and communities play in the labor market. A prominent role of networks, from an economic perspective, is that they mediate trade. Several chapters cover bilateral trade in networks, strategic intermediation, and the role of networks in international trade. Contributions discuss as well the role of networks for organizations. On the one hand, one chapter discusses the role of networks for the performance of organizations, while two other chapters discuss managing networks of consumers and pricing in the presence of network-based spillovers. Finally, the authors discuss the internet as a network with attention to the issue of net neutrality.
Author: Ying-Ju Chen
Publisher:
ISBN:
Category : Competition
Languages : en
Pages : 52
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Book Description
We study pricing strategies of competing firms who sell heterogeneous products to a group of customers in a social network. Goods are substitutes and each customer gains network externalities from her neighbors who consume the same products. We show that there is a unique subgame-perfect equilibrium where, first, firms choose the prices of each good for each consumer, and, then, individuals decide their consumption of the goods. We also fully characterize the equilibrium prices for any network structure, and relate these equilibrium outcomes to the familiar Katz-Bonacich network centrality measures. Contrary to the monopoly case, the equilibrium price of a customer not only depends on her own characteristics but also on others' characteristics. We show that firms price discriminate and charge lower prices to more central consumers. This means that more central consumers obtain a larger discount because of their impact in terms of consumption on their neighbors. We also show that the firms' equilibrium profits can decrease when either the network becomes denser or network effects are higher.
Author: Pekka Sääskilahti
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
We analyze how uncertainty about consumers' preferences affects the pricing of a network device and the interaction usage it enables. A premium device price may give high hardware profits, but adoption will be low reducing the profits from interaction services. The firm internalizing this adjusts its hardware price downward, and prices as if it was getting the maximal interaction usage profits from the full network. Profits decrease in uncertainty, whereas consumer surplus increases in uncertainty, but only if the level of uncertainty is high. Bundling the device and services is profitable if uncertainty relates mostly to consumers' private information.
Author: Youssef Hamadi
Publisher: Springer Science & Business Media
ISBN: 3642214347
Category : Computers
Languages : en
Pages : 308
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Book Description
Decades of innovations in combinatorial problem solving have produced better and more complex algorithms. These new methods are better since they can solve larger problems and address new application domains. They are also more complex which means that they are hard to reproduce and often harder to fine-tune to the peculiarities of a given problem. This last point has created a paradox where efficient tools are out of reach of practitioners. Autonomous search (AS) represents a new research field defined to precisely address the above challenge. Its major strength and originality consist in the fact that problem solvers can now perform self-improvement operations based on analysis of the performances of the solving process -- including short-term reactive reconfiguration and long-term improvement through self-analysis of the performance, offline tuning and online control, and adaptive control and supervised control. Autonomous search "crosses the chasm" and provides engineers and practitioners with systems that are able to autonomously self-tune their performance while effectively solving problems. This is the first book dedicated to this topic, and it can be used as a reference for researchers, engineers, and postgraduates in the areas of constraint programming, machine learning, evolutionary computing, and feedback control theory. After the editors' introduction to autonomous search, the chapters are focused on tuning algorithm parameters, autonomous complete (tree-based) constraint solvers, autonomous control in metaheuristics and heuristics, and future autonomous solving paradigms. Autonomous search (AS) represents a new research field defined to precisely address the above challenge. Its major strength and originality consist in the fact that problem solvers can now perform self-improvement operations based on analysis of the performances of the solving process -- including short-term reactive reconfiguration and long-term improvement through self-analysis of the performance, offline tuning and online control, and adaptive control and supervised control. Autonomous search "crosses the chasm" and provides engineers and practitioners with systems that are able to autonomously self-tune their performance while effectively solving problems. This is the first book dedicated to this topic, and it can be used as a reference for researchers, engineers, and postgraduates in the areas of constraint programming, machine learning, evolutionary computing, and feedback control theory. After the editors' introduction to autonomous search, the chapters are focused on tuning algorithm parameters, autonomous complete (tree-based) constraint solvers, autonomous control in metaheuristics and heuristics, and future autonomous solving paradigms. This is the first book dedicated to this topic, and it can be used as a reference for researchers, engineers, and postgraduates in the areas of constraint programming, machine learning, evolutionary computing, and feedback control theory. After the editors' introduction to autonomous search, the chapters are focused on tuning algorithm parameters, autonomous complete (tree-based) constraint solvers, autonomous control in metaheuristics and heuristics, and future autonomous solving paradigms. This is the first book dedicated to this topic, and it can be used as a reference for researchers, engineers, and postgraduates in the areas of constraint programming, machine learning, evolutionary computing, and feedback control theory. After the editors' introduction to autonomous search, the chapters are focused on tuning algorithm parameters, autonomous complete (tree-based) constraint solvers, autonomous control in metaheuristics and heuristics, and future autonomous solving paradigms.
Author: Fedor V. Fomin
Publisher: Springer
ISBN: 3642392121
Category : Computers
Languages : en
Pages : 722
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Book Description
This two-volume set of LNCS 7965 and LNCS 7966 constitutes the refereed proceedings of the 40th International Colloquium on Automata, Languages and Programming, ICALP 2013, held in Riga, Latvia, in July 2013. The total of 124 revised full papers presented were carefully reviewed and selected from 422 submissions. They are organized in three tracks focussing on algorithms, complexity and games; logic, semantics, automata and theory of programming; and foundations of networked computation.
Author: Emily Erikson
Publisher: Princeton University Press
ISBN: 0691173796
Category : Business & Economics
Languages : en
Pages : 268
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Book Description
The English East India Company was one of the most powerful and enduring organizations in history. Between Monopoly and Free Trade locates the source of that success in the innovative policy by which the Company's Court of Directors granted employees the right to pursue their own commercial interests while in the firm’s employ. Exploring trade network dynamics, decision-making processes, and ports and organizational context, Emily Erikson demonstrates why the English East India Company was a dominant force in the expansion of trade between Europe and Asia, and she sheds light on the related problems of why England experienced rapid economic development and how the relationship between Europe and Asia shifted in the eighteenth and nineteenth centuries. Though the Company held a monopoly on English overseas trade to Asia, the Court of Directors extended the right to trade in Asia to their employees, creating an unusual situation in which employees worked both for themselves and for the Company as overseas merchants. Building on the organizational infrastructure of the Company and the sophisticated commercial institutions of the markets of the East, employees constructed a cohesive internal network of peer communications that directed English trading ships during their voyages. This network integrated Company operations, encouraged innovation, and increased the Company’s flexibility, adaptability, and responsiveness to local circumstance. Between Monopoly and Free Trade highlights the dynamic potential of social networks in the early modern era.
Author: Bo Honoré
Publisher: Cambridge University Press
ISBN: 1108245668
Category : Business & Economics
Languages : en
Pages : 350
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Book Description
This is the first of two volumes containing papers and commentaries presented at the Eleventh World Congress of the Econometric Society, held in Montreal, Canada in August 2015. These papers provide state-of-the-art guides to the most important recent research in economics. The book includes surveys and interpretations of key developments in economics and econometrics, and discussion of future directions for a wide variety of topics, covering both theory and application. These volumes provide a unique, accessible survey of progress on the discipline, written by leading specialists in their fields. The first volume includes theoretical and applied papers addressing topics such as dynamic mechanism design, agency problems, and networks.
Author: Nebojsa Nakicenovic
Publisher: Springer Science & Business Media
ISBN: 3662027003
Category : Science
Languages : en
Pages : 616
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Book Description
Wee felt it before in sense; but now wee know it by science. Edward Misselden (1623) The collective effort reported in this volume is the outcome of the diffusion of the idea of diffusion as a fundamental process in society. The considerable number of disciplines represented here indicates the weight of the problem area. The editors are to be congratulated for their initiative in drawing together present thinking at a vivid meeting, now also in print. An old timer in the business has not much to add. But maybe some things, bearing in mind that a Preface is a celebration and not a review. As always with ideas it is hard to identify those who first gave shape to the idea of diffusion. In a general sense it is probably an observation as old as human self-reflection that groups of populations exchange ideas and copy habits and implements from each other. Sometimes it has even been recommended, as a Chinese proverb suggested millenia ago, "If you want to become a good farmer, look at your neighbor" .
