Pricing Behaviors on Networks: Some General Results for Two-way Networks

In this paper, we study monopolistic pricing behaviors within a two-way network. In this symbiotic production system, independent decision centers carry out an activity which concurs to the production of different system goods. The players are assumed to know the whole network. Due to this rationality, they try to capture a share of the profit of the firms who sell the system goods to the consumers. These double marginalization behaviors are studied within very general networks. Conditions with ensure existence and uniqueness are discussed. We even provided a complete characterization of an equilibrium. Potential applications are also discussed