Belleflamme (2002)
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| Belleflamme (2002) | |
| Title: | Pricing Information Goods in the Presence of Copying |
| Author(s): | Paul Belleflamme |
| Year: | 2002 |
| Citation: | Belleflamme, Paul. Pricing information goods in the presence of copying. U of London Queen Mary Economics Working Paper 463 (2002). |
| Link(s): | , Open Access |
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| Linked by: | Belleflamme, Omrani and Peitz (2015) |
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| Cross Country Study?: | No |
| Comparative Study?: | No |
| Literature review?: | No |
| Government or policy study?: | No |
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Abstract
The effects of (private, small-scale) copying on the pricing behavior of producers of information goods are studied within a unified model a la Mussa-Rosen (1978). When the copying technology involves a marginal cost and no fixed cost, producers act independently. In this simple framework, we highlight the trade-off between ex ante and ex post efficiency considerations (how to provide the right incentives to create whilst limiting monopoly distortions?). When the copying technology involves a fixed cost and no marginal cost, pricing decisions are interdependent. We investigate the strategic pricing game by focussing on some significant symmetric Nash equilibria.
