Pricing Network Effects: Competition

• 成果类型: Article
• 署名作者: Fainmesser, Itay P.; Galeotti, Andrea
• 署名单位: Johns Hopkins University; Johns Hopkins University; University of London; London Business School
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MICROECONOMICS
• ISSN/ISSBN: 1945-7669
• DOI: 10.1257/mic.20170226
• 发表日期: 2020
• 页码: 1-32
• 关键词: externalities

摘要

We steady the practice of influencer marketing in oligopoly markets and its effect on market efficiency. In our model, each consumer is influenced by choices of a subset of other consumers. Firms gather information on consumers' influence and price discriminate using this information. In equilibrium, firms charge premial subsidize below-/above-average-influential consumers; the premial discounts depend on the strength of network effects and on how much information firms have on consumers' influence. Influencer marketing leads to inefficient consumer-product matches. Firms' investments in information are strategic complements, leading to a race for information acquisition that erodes welfare and,firms' profits but increases consumer surplus.