Music Platform Competition and Advertising Strategy in the Duopoly Music Industry

Yi-Shin Lin and Yu-Shing Chang ()
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Yi-Shin Lin: Ming Dao University
Yu-Shing Chang: Ming Dao University

A chapter in Proceedings of 2013 4th International Asia Conference on Industrial Engineering and Management Innovation (IEMI2013), 2014, pp 433-443 from Springer

Abstract: Abstract Information technologies “weed out” the old and bring forth new industries, such as the Otaku Economy Markets and Knowledge Sharing Platforms, and influence traditional industries, especially digitization products. Digital industries also encounter several challenges (e.g., piracy and virtual channels) because of the popularization of the Internet. Hence, we used a game theory approach to compare two competing music platforms with and without paid services. We show that the paid music platform does not earn excess profits, and the relationship between socially optimal advertising and basic utility of virtual digital products are parabolically related.

Keywords: Advertising strategy; On-line music; Social welfare; Two stage game approach (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-642-40060-5_42

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DOI: 10.1007/978-3-642-40060-5_42

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