Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/142679
Authors: 
Benassi, Corrado
Scrimitore, Marcella
Year of Publication: 
2015
Series/Report no.: 
EERI Research Paper Series 05/2015
Abstract: 
We enquiry about the effects of first and second order stochastic dominance shifts of the distribution of the consumers’ willingness to pay, within the standard model of a market with network externalities and hump-shaped demand curve. This issue is analyzed in the polar cases of perfect competition and monopoly. We find that, while under perfect competition both types of distributional changes result in higher output, provided marginal costs are low enough, in the monopoly case the final outcome depends on the way income distribution and the network externality interact in determining market demand elasticity.
Subjects: 
Network externalities
income distribution
stochastic dominance
JEL: 
D31
D40
L1
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.