The value of network information: Assortative mixing makes the difference

• 成果类型: Article
• 署名作者: Belhaj, Mohamed; Deroian, Frederic
• 署名单位: Aix-Marseille Universite
• 刊物名称: GAMES AND ECONOMIC BEHAVIOR
• ISSN/ISSBN: 0899-8256
• DOI: 10.1016/j.geb.2020.12.008
• 发表日期: 2021
• 页码: 428-442
• 关键词: Monopoly; network effects; Network information; Bonacich centrality; Degree assortativity; Assortative mixing

摘要

A monopoly sells a network good to a large population of consumers. We explore how the monopoly's profit and the consumer surplus vary with the arrival of public information about the network structure. The analysis reveals that, under homogeneous preferences for the good, degree assortativity ensures that information arrival increases both profit and consumer surplus. In contrast, heterogeneous preferences for the good can create a tension between consumer surplus and profit. (C) 2021 Elsevier Inc. All rights reserved.