Pricing Digital Goods: Discontinuous Costs and Shared Infrastructure
نویسندگان
چکیده
منابع مشابه
Pricing Digital Goods: Discontinuous Costs and Shared Infrastructure
We develop and analyze a model of pricing for digital products with discontinuous supply functions. This characterizes a number of information technology-based products and services for which variable increases in demand are fulfilled by the addition of "blocks" of computing or network infrastructure. Examples include internet service, telephony, online trading, on-demand software, digital musi...
متن کاملPricing Digital Goods: Discontinuous Costs and Shared Infrastructure1
We develop and analyze a model of pricing for digital products with discontinuous supply functions. This characterizes a number of information technology-based products and services for which variable increases in demand are fulfilled by the addition of "blocks" of computing or network infrastructure. Examples include internet service, telephony, online trading, on-demand software, digital musi...
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E-commerce is growing rapidly and sales of digital goods represent a substantial portion of all online sales. Several goods such as music and books are now available in a physical and digital format. In a single-period case we compare pricing of digital vs. physical goods and derive an optimal pricing strategy for digital goods in both a general setting without a capacity constraint and a capac...
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The cost of reproducing a digital good is upper bounded by some low cost, providing the seller with an unlimited supply of items for sale. In such cases, or even in cases that the supply is limited but at least as many as the number of bidders, the agents have no motivation to compete with each other. This lack of competition decreases the total revenue of the seller, making traditional auction...
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ژورنال
عنوان ژورنال: Information Systems Research
سال: 2011
ISSN: 1047-7047,1526-5536
DOI: 10.1287/isre.1100.0283