Difference between revisions of "Joeng and Lee (2010)"
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|Abstract=This article analyses consumer preferences with regard to important attributes of online music services. Conjoint analysis and a random coefficient discrete choice model using Bayesian approach with Gibbs sampling are used to estimate the preferences. Based on the quantitative results, we use simulation to look at how a new pricing strategy and the threat of legal penalty for file sharing would influence the online music market. Findings include these: estimated willingness to pay for downloading one music file is significantly less than the actual price of the file; consumers are sensitive to longer search and download times for music files and very sensitive to the threat of legal action; and consumers are not sensitive to online music services broadening their catalogues. Finally, the simulation shows that a combination of increased transaction costs for illegal file sharing and lower-priced digital music files would inhibit illegal file sharing and bolster the number of people purchasing music legally from the online services. | |Abstract=This article analyses consumer preferences with regard to important attributes of online music services. Conjoint analysis and a random coefficient discrete choice model using Bayesian approach with Gibbs sampling are used to estimate the preferences. Based on the quantitative results, we use simulation to look at how a new pricing strategy and the threat of legal penalty for file sharing would influence the online music market. Findings include these: estimated willingness to pay for downloading one music file is significantly less than the actual price of the file; consumers are sensitive to longer search and download times for music files and very sensitive to the threat of legal action; and consumers are not sensitive to online music services broadening their catalogues. Finally, the simulation shows that a combination of increased transaction costs for illegal file sharing and lower-priced digital music files would inhibit illegal file sharing and bolster the number of people purchasing music legally from the online services. | ||
|Authentic Link=http://www.tandfonline.com/doi/abs/10.1080/00036840802360153#.VdDQ8vlmrpI | |Authentic Link=http://www.tandfonline.com/doi/abs/10.1080/00036840802360153#.VdDQ8vlmrpI | ||
| + | |Plain Text Proposition=*estimated willingness to pay for downloading one music file is significantly less than the actual price of the file; | ||
| + | *consumers are sensitive to longer search and download times for music files and very sensitive to the threat of legal action; | ||
| + | *consumers are not sensitive to online music services broadening their catalogues; | ||
| + | *the simulation shows that a combination of increased transaction costs for illegal file sharing and lower-priced digital music files would inhibit illegal file sharing and bolster the number of people purchasing music legally from the online services. | ||
| + | |FundamentalIssue=5. Understanding consumption/use (e.g. determinants of unlawful behaviour; user-generated content; social media), | ||
| + | |EvidenceBasedPolicy=F. Enforcement (quantifying infringement; criminal sanctions; intermediary liability; graduated response; litigation and court data; commercial/non-commercial distinction; education and awareness), | ||
| + | |Discipline=K42: Illegal Behavior and the Enforcement of Law, O33: Technological Change: Choices and Consequences • Diffusion Processes, O34: Intellectual Property and Intellectual Capital | ||
|Cross-country=No | |Cross-country=No | ||
|Comparative=No | |Comparative=No | ||
Revision as of 20:54, 26 September 2016
Contents
Source Details
| Joeng and Lee (2010) | |
| Title: | Estimating Consumer Preferences for Online Music Services |
| Author(s): | Jeong, G., Lee, J |
| Year: | 2010 |
| Citation: | Jeong, G., and J . Lee. 2010. “Estimating Consumer Preferences for Online Music Services”. Applied Economics 42(30); 3885-3893. |
| Link(s): | Definitive |
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| About the Data | |
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| Cross Country Study?: | No |
| Comparative Study?: | No |
| Literature review?: | No |
| Government or policy study?: | No |
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Abstract
This article analyses consumer preferences with regard to important attributes of online music services. Conjoint analysis and a random coefficient discrete choice model using Bayesian approach with Gibbs sampling are used to estimate the preferences. Based on the quantitative results, we use simulation to look at how a new pricing strategy and the threat of legal penalty for file sharing would influence the online music market. Findings include these: estimated willingness to pay for downloading one music file is significantly less than the actual price of the file; consumers are sensitive to longer search and download times for music files and very sensitive to the threat of legal action; and consumers are not sensitive to online music services broadening their catalogues. Finally, the simulation shows that a combination of increased transaction costs for illegal file sharing and lower-priced digital music files would inhibit illegal file sharing and bolster the number of people purchasing music legally from the online services.
Main Results of the Study
- estimated willingness to pay for downloading one music file is significantly less than the actual price of the file;
- consumers are sensitive to longer search and download times for music files and very sensitive to the threat of legal action;
- consumers are not sensitive to online music services broadening their catalogues;
- the simulation shows that a combination of increased transaction costs for illegal file sharing and lower-priced digital music files would inhibit illegal file sharing and bolster the number of people purchasing music legally from the online services.
