Abstract
We consider optimal pricing problems for a product that experiences network effects. Given a price, the sales quantity of the product arises as an equilibrium, which may not be unique. In contrast to previous studies that take a best-case view when there are multiple equilibrium sales quantities, we maximize the seller's revenue assuming that the worst-case equilibrium quantity will arise in response to a chosen price. We compare the best- and worst-case solutions, and provide asymptotic analysis of revenues.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 345-351 |
| Number of pages | 7 |
| Journal | Operations Research Letters |
| Volume | 46 |
| Issue number | 3 |
| DOIs | |
| State | Published - May 2018 |
Bibliographical note
Publisher Copyright:© 2018 The Authors
Keywords
- Choice model
- Network effect
- Pricing
- Revenue management
Fingerprint
Dive into the research topics of 'Optimal worst-case pricing for a logit demand model with network effects'. Together they form a unique fingerprint.Cite this
- APA
- Standard
- Harvard
- Vancouver
- Author
- BIBTEX
- RIS