Pricing behaviors on networks: Some general results for two-way networks

In this paper, we study monopolistic pricing behaviors within a two-way net work. In this symbiotic production system, independent decision centers car ry out an activity which concurs to the production of different system good s. The players are assumed to know the whole network. Due to this rationali ty, they try to capture a share of the profit of the firms who sell the sys tem goods to the consumers. These double marginalization behaviors are stud ied within very general networks. Conditions with ensure existence and uniq ueness are discussed. We even provided a complete characterization of an eq uilibrium. Potential applications are also discussed