Publication Date

January 1999

Publication Details

Levy, A, Profit-Maximising and Non-profit Networks' Density, Membership Fees and Service in Monopolistic and Duopolistic Frameworks, Working Paper 99-2, Department of Economics, University of Wollongong, 1999.


Network density, membership fees and service are analytically related to factors such as the size of the target population, the distribution of ability to enjoy the network’s service within the target population, the tax-rebate rate on membership payment, the service production costs, which are increased by congestion or reduced by agglomeration, and the network organisational costs. The analysis is conducted for the cases of monopolistic and duopolistic profit-maximising networks and for the case of a monopolistic budget-balancing and density-targeting network.