Monopoly provision of a network 2 Consider the marginal consumer with basic valuation v=pf The firm will serve all consumers with valuations> v Solving for the fraction fof the market served we have f=1-v/100=1-p/100f So, the inverse demand function is: p=100f(1-t)4 Monopoly Provision of a Network 2 • Consider the marginal consumer with basic valuation v  pf ~ • The firm will serve all consumers with valuations  v ~ • Solving for the fraction f of the market served we have: f = 1 - /100 ~ v = 1 – p/100f • So, the inverse demand function is: p = 100f(1 – f)