Information goods vs. industrial goods: Cost structure and competition
We study markets for information goods and find that they differ significantly from markets for traditional industrial goods. Markets for information goods in which products are vertically differentiated lack the segmentation inherent in markets for industrial goods. As a result, a monopoly will off...
| Main Authors: | , |
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| Format: | Journal Article |
| Published: |
2011
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| Online Access: | http://hdl.handle.net/20.500.11937/11586 |
| _version_ | 1848747845694259200 |
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| author | Jones, Roy Mendelson, H. |
| author_facet | Jones, Roy Mendelson, H. |
| author_sort | Jones, Roy |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | We study markets for information goods and find that they differ significantly from markets for traditional industrial goods. Markets for information goods in which products are vertically differentiated lack the segmentation inherent in markets for industrial goods. As a result, a monopoly will offer only a single product. Competition leads to highly concentrated information-good markets, with the leading firm behaving almost like a monopoly even with free entry and without network effects. We study how the structure of the firms' cost functions drives our results. © 2011 INFORMS. |
| first_indexed | 2025-11-14T06:55:37Z |
| format | Journal Article |
| id | curtin-20.500.11937-11586 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T06:55:37Z |
| publishDate | 2011 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-115862017-09-13T14:53:51Z Information goods vs. industrial goods: Cost structure and competition Jones, Roy Mendelson, H. We study markets for information goods and find that they differ significantly from markets for traditional industrial goods. Markets for information goods in which products are vertically differentiated lack the segmentation inherent in markets for industrial goods. As a result, a monopoly will offer only a single product. Competition leads to highly concentrated information-good markets, with the leading firm behaving almost like a monopoly even with free entry and without network effects. We study how the structure of the firms' cost functions drives our results. © 2011 INFORMS. 2011 Journal Article http://hdl.handle.net/20.500.11937/11586 10.1287/mnsc.1100.1262 restricted |
| spellingShingle | Jones, Roy Mendelson, H. Information goods vs. industrial goods: Cost structure and competition |
| title | Information goods vs. industrial goods: Cost structure and competition |
| title_full | Information goods vs. industrial goods: Cost structure and competition |
| title_fullStr | Information goods vs. industrial goods: Cost structure and competition |
| title_full_unstemmed | Information goods vs. industrial goods: Cost structure and competition |
| title_short | Information goods vs. industrial goods: Cost structure and competition |
| title_sort | information goods vs. industrial goods: cost structure and competition |
| url | http://hdl.handle.net/20.500.11937/11586 |