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Model: Entry of a Digital Goods Producer

  • Michael Vogelsang
Chapter
Part of the Contributions to Economics book series (CE)

Abstract

In this chapter, a theoretical framework of an access provider and producers of digital goods is presented. In Sect. 6.2, producers of pure digital goods compete for price-quality leadership. In Sect. 6.3, a platform provider of a digital, two-sided market is introduced. In both versions, a profit function for the digital producers in a closed economy is developed first. Then the economy is opened and the best choice of strategy for a digital goods producer located elsewhere in the world is deduced.

Keywords

Marginal Cost Real Wage Market Entry Customer Base Closed Economy 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Physica-Verlag Heidelberg 2010

Authors and Affiliations

  1. 1.European Institute for International Economic Relations (EIIW)University of WuppertalWuppertalGermany

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