Versioning Digital Products

디지털상품의 품질 차별화

  • 유극렬 (동덕여자대학교 경영학과)
  • Published : 2004.11.01

Abstract

The paper demonstrates that versioning of digital products occurs more frequently than that of physical products because of low marginal cost. The versioning occurs no matter what a customer knows his/her reservation price. Low-quality version will not be produced when the difference between reservation prices is very large. The paper also shows that a firm tries to lower the quality of low-quality product to prevent customers with high reservation prices from purchasing low-quality product.

Keywords

References

  1. Bakos, Y. and E. Bryniolfsson, 'Bundling Information Goods: Pricing, Profits and Efficiency,' Management Science, Vol.45(2000), pp.1613-1630
  2. Brynjolfsson, E., Y. Hu and M. Smith, Consumer Surplus in the Digital Economy : Estimating the Value of Increased Product Variety at Online Booksellers, working paper, 2003
  3. Deneckere R. and P. McAfee, 'Damaged Goods,' Journal of Economics and Management Strategy, (1996), pp.149-174
  4. Huber, P., 'Two Cheers for Price Discrirnina tion,' Forbes, Vol.152(1993), pp.142
  5. Mussa, M and S. Rosen, 'Monopoly and Product Quality,' Journal of Economic Theory, Vol.18(1978), pp.301-317
  6. Salinger, M, 'A Graphical Analysis of Bundling,' Journal of Business, Vol.68(1995), pp.85-98
  7. Shapiro, C. andH Varian, 'Iniorrnation Pules., Harvard Business School Press, Massachusetts, 1999
  8. Simonson, I. and A Tversky, 'Choice in Context : Tradeoff Contrast and Extremess Aversion,' Journal of Marketing Research, Vol.29(1992), pp.281-295
  9. Smith, G. and T. Nagle, 'Frames of Reference and Buyers' Perception of Price and Value,' California Management Review, Vol.38(1995), pp.98-116
  10. Varian, H., 'Versioning Information Goods,' (1997), working paper