Digital distribution and the prohibition of resale markets for information goods
| العنوان: | Digital distribution and the prohibition of resale markets for information goods |
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| المؤلفون: | Benjamin Shiller |
| المصدر: | Quantitative Marketing and Economics. 11:403-435 |
| بيانات النشر: | Springer Science and Business Media LLC, 2013. |
| سنة النشر: | 2013 |
| مصطلحات موضوعية: | Marketing, Counterfactual thinking, Discrete choice, business.industry, Economics, Econometrics and Finance (miscellaneous), Durable good, Secondary market, Profit (economics), jel:L00, Microeconomics, Renting, jel:M30, Commerce, Economics, Revenue, Information good, jel:K19, business |
| الوصف: | An existing theoretical literature finds that frictionless resale markets cannot reduce profits of monopolist producers of perfectly durable goods. This paper starts by presenting logical arguments suggesting this finding does not hold for goods consumers tire of with use, implying the impact of resale is an empirical question. The empirical impact is then estimated in the market for video games, one of many markets in which producers may soon legally prevent resale by distributing their products digitally as downloads or streamed rentals. Estimation proceeds in two steps. First, demand parameters are estimated using a dynamic discrete choice model in a market with allowed resale, using data on new sales and used trade- ins. Then, using these parameter estimates, prices, profits, and consumer welfare are simulated under counterfactual environments. When resale is allowed, firms are unable to prevent their goods from selling for low prices in later periods. The ability to do so by restricting resale outright yields significant profit increases. Renting, however, does not raise profits as much due to a revenue extraction problem. |
| تدمد: | 1573-711X 1570-7156 |
| URL الوصول: | https://explore.openaire.eu/search/publication?articleId=doi_dedup___::8053f16a385b040636998fed9aeec3e7 https://doi.org/10.1007/s11129-013-9139-x |
| حقوق: | OPEN |
| رقم الأكسشن: | edsair.doi.dedup.....8053f16a385b040636998fed9aeec3e7 |
| قاعدة البيانات: | OpenAIRE |
| تدمد: | 1573711X 15707156 |
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