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| Author: | Ohebar, A. Oren, S. S. |
| Title: | Dynamic nonlinear pricing in networks with interdependent demand. |
| Journal: | Operations Research
1986 : MAY-JUN, VOL. 34:3, p. 384-394 |
| Index terms: | PRICING EXTERNALITIES NETWORKS |
| Language: | eng |
| Abstract: | The pricing decision for a product whose consumption value increases is considered as the network of adopters expands. The case of a single supplier offering the product to a heterogeneous population is analyzed. Consumers decide on network access and consumption quantity. The pricing decision consists of choosing a pricing schedule that maximizes the present value of a weighted sum of total surplus and producer profits,subject to the dynamics of market growth. The separation,what the optimal nonlinear price schedule should be and how the price schedule should be changed optimally over the time,pricing problems. |
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