Industrial Organization and the Digital Economy

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Overview

Digital technology has dramatically changed the structure of many industrial sectors.
The rise of the Internet and increased broadband access have given rise to new business models and strategies for firms dealing with both electronic and physical goods. Industrial Organization and the Digital Economy focuses on changes in the two industries most affected by the new technology:
software and music. The book offers the theoretical and factual grounding necessary for understanding the changes in industrial organization brought about by the digital economy, with the chapters together providing an accessible and interesting cross-fertilization of fact and theory.
Moreover, two chapters demonstrate the relevance of the emerging literature on two-sided markets for the digital economy.The contributors consider such topics as the innovation value of software;
empirical evidence and theoretical analysis regarding the impact of file sharing on music sales; the ability of firms to modify their products and offer them in different versions; the practice of preannouncing information goods; the effects of electronic commerce on both consumers and retailers;
and price-setting by electronic mediators. The studies in Industrial Organization and the Digital
Economy provide a valuable starting point for future research on other aspects of the subject,
including the open-source movement and trust and reputation.Contributors:Paul Belleflamme, Jay Pil
Choi, Emin M. Dinlersoz, David S. Evans, Chaim Fershtman, Neil Gandal, Amit Gayer, Andrei Hagiu,
Gerhard Illing, Bruno Jullien, Eirik Gaard Kristiansen, Stan J. Liebowitz, Jae Nahm, Martin Peitz,
Pedro Pereira, Richard Schmalensee, Oz Shy, Patrick Waelbroeck

The MIT Press

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Product Details

  • ISBN-13: 9780262090414
  • Publisher: MIT Press
  • Publication date: 7/7/2006
  • Edition description: New Edition
  • Pages: 344
  • Product dimensions: 6.00 (w) x 9.00 (h) x 0.75 (d)

Meet the Author

Gerhard Illing is Professor of Economics at the University of Munich. He is the coeditor of
Spectrum Auctions and Competition in Telecommunications (MIT Press, 2004).

Martin Peitz is Professor of Economics at the University of Mannheim, Germany.

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Table of Contents

1 Industrial organization and the digital economy 1
2 Software patents 11
3 Software platforms 31
4 Digital music 71
5 Economists examine file sharing and music sales 145
6 Versioning information goods 175
7 Preannouncing information goods 207
8 Copyright enforcement in the digital era 229
9 Diffusion of electronic commerce 241
10 Two-sided markets and electronic intermediaries 273
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