Confessions of an Internet Monopolist: Demand Estimation for a Versioned Information Good
AbstractWe investigate profit-maximizing versioning plans for an information goods monopolist. The analysis employs data obtained from a web-based field experiment in which potential buyers were offered information goods in varied price-quality configurations. Maximum simulated likelihood (MSL) methods are used to estimate parameters describing the distribution of utility function parameters across potential buyers of the good. The resulting estimates are used to examine the impact of versioning on seller profits and market efficiency.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 10106.
Date of creation: 2006
Date of revision: 2008
Versioning; price discrimination; field experiment; maximum simulated likelihood;
Other versions of this item:
- Henry W. Chappell & Paulo Guimarães & Orgül Demet Öztürk, 2011. "Confessions of an internet monopolist: demand estimation for a versioned information good," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 32(1), pages 1-15, January.
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- D42 - Microeconomics - - Market Structure and Pricing - - - Monopoly
- C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-08-31 (All new papers)
- NEP-COM-2008-08-31 (Industrial Competition)
- NEP-ICT-2008-08-31 (Information & Communication Technologies)
- NEP-MIC-2008-08-31 (Microeconomics)
- NEP-MKT-2008-08-31 (Marketing)
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