Show Summary Details

Page of

PRINTED FROM OXFORD HANDBOOKS ONLINE (www.oxfordhandbooks.com). © Oxford University Press, 2018. All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single chapter of a title in Oxford Handbooks Online for personal use (for details see Privacy Policy and Legal Notice).

date: 20 October 2019

Abstract and Keywords

This chapter analyzes the optimal use of social networks by firms that wish to diffuse new products, rely on word-of-mouth communication for advertising, or exploit consumption externalities among consumers. It focuses on two topics: the targeting of individuals to diffuse information or opinions in a social network, and the pricing at different nodes of the social network when agents experience consumption externalities. In both cases, firms take the network of social interaction as given and consider how to optimally leverage social effects to introduce new products or maximize profits .

Keywords: targeting, pricing, new product diffusion, consumption externalities, word-of-mouth communication

Access to the complete content on Oxford Handbooks Online requires a subscription or purchase. Public users are able to search the site and view the abstracts and keywords for each book and chapter without a subscription.

Please subscribe or login to access full text content.

If you have purchased a print title that contains an access token, please see the token for information about how to register your code.

For questions on access or troubleshooting, please check our FAQs, and if you can''t find the answer there, please contact us.