Payment on information markets

Wolfgang G. Stock

Chapter 17 in The Elgar Companion to Information Economics, 2024, pp 339-363 from Edward Elgar Publishing

Abstract: On information markets, or at “i-commerce”, digital information is traded. Besides money we observed diverse and innovative new cash and noncash payment models which lead us to suggest a new classification of i-commerce by arity. In nullary information markets, there is no price relation, i.e., products and services are free from payment (e.g. freemium products as trial offers or free basic goods, cross-subsidization, universal services, open access). Unary information markets (with only one currency, money) include fixed prices, 1st degree price discriminationsprice discrimination (negotiations, pay-what-you-want: tips, social paying, donations), 2nd degree price discriminations (versioning, windowing, bundling/unbundling), and 3rd degree price discriminations (target group-specific pricing). Binary information markets (e.g. search engine and social media markets) present a second payment relation besides money: End users pay with their attention or their personal data, advertisers pay with money frequently after bidding and hidden auctions. On ternary information markets (especially influencer markets on social media) fan loyalty is a third payment relation. Payment is based on following internet celebrities, sometimes called “wanghongs”, and on viewing their text, videos, live-broadcasts, or images.

Keywords: Business and Management; Economics and Finance; Innovations and Technology (search for similar items in EconPapers)
Date: 2024
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