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The value of network information: Assortative mixing makes the difference

Abstract : 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.
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https://hal-amu.archives-ouvertes.fr/hal-03160602
Contributor : Elisabeth Lhuillier <>
Submitted on : Friday, March 5, 2021 - 1:02:01 PM
Last modification on : Monday, March 29, 2021 - 2:46:29 PM

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Mohamed Belhaj, Frédéric Deroïan. The value of network information: Assortative mixing makes the difference. Games and Economic Behavior, Elsevier, 2021, 126, pp.428-442. ⟨10.1016/j.geb.2020.12.008⟩. ⟨hal-03160602⟩

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