Competitive pricing under local network effects

Ali Tavasoli, Mehrdad Fazli, Ehsan Ardjmand, William A. Young II, Heman Shakeri

Abstract: Highlights•Pricing problem in a duopoly under local externalities studied.•A two layer network architecture was used to model the problem.•Equilibrium and homogeneous and heterogeneous pricing examined.•Network layers correlation impacts equilibrium and coexistence.•Centrality measures and optimal prices are highly correlated.