The Analysis of Monopoly’s Optimal Quality and Price Under Network Externality Surroundings

碩士 === 國立高雄第一科技大學 === 運輸倉儲營運所 === 91 === Katz and Shapiro (1985) deemed that network externality originated from increment of product consumption which emanates more demand quantity. It is possible that network is from network externality and both of them belong to positive relation, meaning that in...

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Bibliographic Details
Main Authors: Kung-Piao Wang, 王光麃
Other Authors: Wei-ming Wu
Format: Others
Language:zh-TW
Published: 2003
Online Access:http://ndltd.ncl.edu.tw/handle/99708225443111255093
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Summary:碩士 === 國立高雄第一科技大學 === 運輸倉儲營運所 === 91 === Katz and Shapiro (1985) deemed that network externality originated from increment of product consumption which emanates more demand quantity. It is possible that network is from network externality and both of them belong to positive relation, meaning that increment of consumption can raise network externality. Based on classical quality demand theory, quality is viewed as exogenous variable .In the other hand, this study manipulate quality as a ingenuous variable and therefore, when pricing optimally, firms need to think about positive and negative effects caused by quality at the same time. This study employs monopoly and duopoly models to analyses firm’s optimal price and quality in comparative static analysis. Results reveal that in duopoly model, one firm is located on 1/3 and the other is located on .2/3, which is distributed averagely in the market. According to monopoly structure, equilibrium price and quantity are under increasing condition and in addition, quality demand elasticity and price demand elasticity display decreasing phenomenon. Ultimately, monopoly model is revised to dynamic optimal control theory with one state variable (reputation) ,one control variable (quality).and space economic idea proposed by Hotelling In dynamic control policy, monopoly structure lying in autonomous system is under saddle point equilibrium. In the non-autonomous system, quality and reputation reveals a stable equilibrium.