Publication Type
Journal Article
Version
submittedVersion
Publication Date
2-2005
Abstract
This paper examines the optimality of intertemporal price discrimination when network externality effects are present in the consumption of a durable good. We conduct our study in two settings. In a model with two household types, utilities are dependent on the cumulative proportion of households that have purchased the durable good. Next, in a model with a continuum of household types, we extend the analysis to the case where households consume both a durable good and a stream of non-durable goods. We show that in both settings, the presence of network externalities facilitates a sales strategy with intertemporal price discrimination. [PUBLICATION ABSTRACT]
Keywords
intertemporal price discrimination, durable good, household demand, network externality.
Discipline
Behavioral Economics
Research Areas
Applied Microeconomics
Publication
Journal of Economics
Volume
84
Issue
1
First Page
49
Last Page
69
ISSN
0931-8658
Identifier
10.1007/s00712-004-0100-z
Publisher
Springer Verlag
Citation
KOH, Winston T. H..
Household Demand, Network Externality Effects and Intertemporal Price Discrimination. (2005). Journal of Economics. 84, (1), 49-69.
Available at: https://ink.library.smu.edu.sg/soe_research/399
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1007/s00712-004-0100-z