Business, Management and Accounting
8 years ago

Monopoly with Network Effects Leads to Lower Prices and Faster Market Coverage

1 view
Durable Goods Monopoly with Network Effects
Cheng‐Tai Wu

Paper Summary

The article explores how a company selling popular products can adjust prices to balance making money and selling goods quickly. They find that when people really like the product, the company will lower prices over time to sell more. The study shows that there is one main way the company will act, and when people really like the product, the company will sell a lot right away.

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