• DocumentCode
    2417381
  • Title

    An Economic Model for Pricing Digital Products

  • Author

    Post, G.V.

  • fYear
    2009
  • fDate
    5-8 Jan. 2009
  • Firstpage
    1
  • Lastpage
    10
  • Abstract
    An economic model is created that emphasizes the characteristics of digital products. By focusing on price instead of quantity, the model examines the impact of low marginal costs and advertising revenue. The conditions for producing negative prices are explored along with the limitations of assuming linear demand curves in an e-commerce setting. The model explains observed phenomenon in Web examples including digital music, search engine competition, and social networks.
  • Keywords
    advertising; electronic commerce; pricing; advertising revenue; digital product pricing; e-commerce; economic model; linear demand curves; low marginal costs; Advertising; Costs; Lead; Mathematical model; Monopoly; Power generation economics; Pricing; Production; Search engines; Social network services;
  • fLanguage
    English
  • Publisher
    ieee
  • Conference_Titel
    System Sciences, 2009. HICSS '09. 42nd Hawaii International Conference on
  • Conference_Location
    Big Island, HI
  • ISSN
    1530-1605
  • Print_ISBN
    978-0-7695-3450-3
  • Type

    conf

  • DOI
    10.1109/HICSS.2009.60
  • Filename
    4755622