Model: Entry of a Digital Goods Producer

Michael Vogelsang ()
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Michael Vogelsang: University of Wuppertal

Chapter Chapter 6 in Digitalization in Open Economies, 2010, pp 129-140 from Springer

Abstract: 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 (search for similar items in EconPapers)
Date: 2010
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DOI: 10.1007/978-3-7908-2392-9_6

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