Optimal pricing with asymmetric demands of senders and receivers

This paper deals with optimal pricing in the network industry. We adopt the approach of two-way calling among individuals who differ in their utility towards sending and receiving calls, and use a very simple and stylized model which enables us to obtain some solid results. Pricing policies of uniform positive pricing on senders only vs. on both senders and receivers are compared to discriminatory policies including negative pricing on receivers, and the profit values as well as the consumer surplus and welfare values are compared for those pricing policies. We develop applicable results that can be derived from these policy comparisons.