| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5078704 | International Journal of Industrial Organization | 2006 | 7 Pages |
Abstract
Downloading digital products for free may harm creators and intermediaries because consumers may no longer buy the version for sale. However, as we show in this paper, this negative effect may be overcompensated by a positive effect due to sampling: consumers are willing to pay more because the match between product characteristics and buyers' tastes is improved. This indeed holds under sufficient taste heterogeneity and product diversity.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Martin Peitz, Patrick Waelbroeck,