ABSTRACT

The quality of services provided in a network does not only depend on some network characteristics, like extension, topology, and arc capacity but on the actual prices faced by final users. Network markets are special examples of markets in which elementary products are combined to create composite products. In networks, consumers ask for paths, composed of one or more links. In order to determine what is the most efficient market regime in a network one should then determine what is the market relationship between different links, namely if two links are regarded as substitutes or complements by consumers. Although the analysis conducted so far has been based on purely abstract, and relatively simple computer-generated networks, the approach could be adopted for the analysis of some real world networks. The observation of some key features of a network would then be sufficient to understand whether more competition is socially desirable.