Pricing, Quality-Setting, and Order of Plays in an Online Information Market
This paper considers the issue of quality differentiation in an online information market in which one network provider and two content providers compete over both prices and con-tent qualities for the real-time network delivery of digital information products. We examine the order of plays in games of vertical product differentiation and show that sequential price choice of network providers reduces content differentiation among online information prod-ucts, so that intense price competition among content providers results. However, sequential price competition reduces not only social welfare but also consumers' surplus.
Volume (Year): 1 (2002)
Issue (Month): 3 (December)
|Contact details of provider:|| Postal: 100 Wenhwa Road, Seatwen, Taichung|
Web page: http://www.ijbe.org/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Avner Shaked & John Sutton, 1982. "Relaxing Price Competition Through Product Differentiation," Review of Economic Studies, Oxford University Press, vol. 49(1), pages 3-13.
- Shy,Oz, 2001.
"The Economics of Network Industries,"
Cambridge University Press, number 9780521805001, june. pag.
- Anderson, Simon P. & Engers, Maxim, 1992. "Stackelberg versus Cournot oligopoly equilibrium," International Journal of Industrial Organization, Elsevier, vol. 10(1), pages 127-135, March.
- Aoki, Reiko & Prusa, Thomas J., 1997. "Sequential versus simultaneous choice with endogenous quality," International Journal of Industrial Organization, Elsevier, vol. 15(1), pages 103-121, February.
- Wauthy, Xavier, 1996.
"Quality Choice in Models of Vertical Differentiation,"
Journal of Industrial Economics,
Wiley Blackwell, vol. 44(3), pages 345-53, September.
- Wauthy, X., 1994. "Quality Choice in Models of Vertical Differentiation," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 1994033, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- Boyer, M. & Moreaux, M., 1985.
"On Stackelberg Equilibria with Differentiated Products: the Critical Role of the Strategy Space,"
Cahiers de recherche
8524, Universite de Montreal, Departement de sciences economiques.
- Boyer, Marcel & Moreaux, Michel, 1987. "On Stackelberg Equilibria with Differentiated Products: The Critical Role of the Strategy Space," Journal of Industrial Economics, Wiley Blackwell, vol. 36(2), pages 217-30, December.
- Economides, Nicholas, 1993. "Quantity leadership and social inefficiency," International Journal of Industrial Organization, Elsevier, vol. 11(2), pages 219-237, June.
- Steve Dowrick, 1986. "von Stackelberg and Cournot Duopoly: Choosing Roles," RAND Journal of Economics, The RAND Corporation, vol. 17(2), pages 251-260, Summer.
- Choi, Chong Ju & Shin, Hyun Song, 1992. "A Comment on a Model of Vertical Product Differentiation," Journal of Industrial Economics, Wiley Blackwell, vol. 40(2), pages 229-31, June.
When requesting a correction, please mention this item's handle: RePEc:ijb:journl:v:1:y:2002:i:3:p:179-191. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Yi-Ju Su)
If references are entirely missing, you can add them using this form.