Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/43431
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dc.contributor.authorChuhay, Romanen_US
dc.date.accessioned2010-11-30en_US
dc.date.accessioned2010-12-22T10:41:50Z-
dc.date.available2010-12-22T10:41:50Z-
dc.date.issued2010en_US
dc.identifier.urihttp://hdl.handle.net/10419/43431-
dc.description.abstractThe paper studies the impact of homophily on the optimal strategies of a monopolist, whose marketing campaign of new product relies on a word of mouth communication. Homophily is a tendency of people to interact more with those who are similar to them. In the model there are two types of consumers embedded into a social network, which differ in friendship preferences and desirable design of product. Consumers can learn about the product directly from an advertisement or from their neighbors. The monopolist chooses the product design and price to influence a pattern of communication among consumers. We find a number of results: (i) for low levels of homophily the product attractive to both types of consumers is preferred to specialized products; (ii) the price elasticity is increasing in homophily; (iii) an increase in the homophily benefits both the monopolist and consumers; and (iv) the product attractive to both types may be optimal even if the monopolist obtains profits only from sales to one type of consumers.en_US
dc.language.isoengen_US
dc.publisher|aFondazione Eni Enrico Mattei (FEEM) |cMilanoen_US
dc.relation.ispartofseries|aNota di lavoro // Fondazione Eni Enrico Mattei: Sustainable development |x2010,118en_US
dc.subject.jelD21en_US
dc.subject.jelD42en_US
dc.subject.jelD60en_US
dc.subject.jelD83en_US
dc.subject.jelL11en_US
dc.subject.jelL12en_US
dc.subject.ddc330en_US
dc.subject.keywordNetworksen_US
dc.subject.keywordWord of mouthen_US
dc.subject.keywordViral marketingen_US
dc.subject.keywordHomophilyen_US
dc.subject.keywordDiffusionen_US
dc.subject.keywordSocial networksen_US
dc.subject.keywordRandom graphsen_US
dc.subject.keywordMonopolyen_US
dc.subject.keywordPricing strategyen_US
dc.subject.keywordProduct designen_US
dc.subject.keywordMarketingen_US
dc.subject.keywordAdvertisementen_US
dc.titleMarketing via friends: strategic diffusion of information in social networks with homophilyen_US
dc.type|aWorking Paperen_US
dc.identifier.ppn640763308en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US

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