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Price Indexes for Microsoft's Personal Computer Software Products

Author

Listed:
  • Jaison R. Abel
  • Ernst R. Berndt
  • Alan G. White

Abstract

Using a unique and comprehensive data source, we measure price changes for Microsoft's desktop personal computer software products during the time period July 1993 through June 2001. This paper contributes to a relatively small literature on price measurement of pre-packaged software by incorporating important channels of distribution, such as volume licensing and Original Equipment Manufacturer, as well as changes in product form, such as upgrades and integrated productivity suites, into matched-model price indexes. Although there are differences over time periods and across products, we find that the prices of Microsoft's desktop operating systems and applications have generally been falling over this time period.

Suggested Citation

  • Jaison R. Abel & Ernst R. Berndt & Alan G. White, 2003. "Price Indexes for Microsoft's Personal Computer Software Products," NBER Working Papers 9966, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:9966
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    References listed on IDEAS

    as
    1. Ernst R. Berndt & Robert S. Pindyck & Pierre Azoulay, 2003. "Consumption Externalities and Diffusion in Pharmaceutical Markets: Antiulcer Drugs," Journal of Industrial Economics, Wiley Blackwell, vol. 51(2), pages 243-270, June.
    2. Erik Brynjolfsson & Chris F. Kemerer, 1996. "Network Externalities in Microcomputer Software: An Econometric Analysis of the Spreadsheet Market," Management Science, INFORMS, vol. 42(12), pages 1627-1647, December.
    3. Ernst R. Berndt & Susan Busch & Richard Frank, 2001. "Treatment Price Indexes for Acute Phase Major Depression," NBER Chapters,in: Medical Care Output and Productivity, pages 463-508 National Bureau of Economic Research, Inc.
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    Citations

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    Cited by:

    1. Robert J. Gordon, 2006. "The Boskin Commission Report: A Retrospective One Decade Later," International Productivity Monitor, Centre for the Study of Living Standards, vol. 12, pages 7-22, Spring.
    2. Alan G. White & Jaison R. Abel & Ernst R. Berndt & Cory W. Monroe, 2010. "Hedonic Price Indexes for Personal Computer Operating Systems and Produtivity Suites," NBER Chapters,in: Contributions in Memory of Zvi Griliches, pages 787-807 National Bureau of Economic Research, Inc.
    3. Mark C. Doms, 2004. "The boom and bust in information technology investment," Economic Review, Federal Reserve Bank of San Francisco, pages 19-34.
    4. Ana Aizcorbe, 2005. "Price Deflators for High Technology Goods and the New Buyer Problem," Industrial Organization 0502009, EconWPA.

    More about this item

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles

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