The value of network information: Assortative mixing makes the difference - Aix-Marseille Université Access content directly
Journal Articles Games and Economic Behavior Year : 2021

The value of network information: Assortative mixing makes the difference

Mohamed Belhaj
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Frédéric Deroïan
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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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Dates and versions

hal-03160602 , version 1 (04-01-2022)

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Attribution - NonCommercial - NoDerivatives

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