主  题: Strategic Choice of Network Externality and Its Impact on Digital Piracy

内容简介:  Network externality plays a major role in the digital products market.  The strength or the degree of the network externality has serious  implications on the overall value or quality of the digital product. We  focus on a situation where the degree of network externality of the  product is a strategic choice of a digital firm that faces a commercial  pirate that produces a lower quality of that product. We characterize  the strategic response of the original firm to the pirate. We find the  profit-maximizing degree of network externality chosen by the original  firm under any cost environment and relative quality difference between  the original and pirated good. Market structure and market coverage are  endogenously determined in the model, which has implications with  respect to piracy. We show that the relationship between  profit-maximizing degree of network externality and the relative quality  difference between the products can be monotonic or non-monotonic. The  pirate's response to the network effect is analyzed. Nash equilibria of  the game in which both the network externality and the low quality are  chosen simultaneously are also derived.

报告人: 卢远瞩     教授    博导

时  间: 2018-10-19    14:00 

地  点: 位育楼117