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- W1558756775 abstract "The paper examines the creators incentives to use alternative channels to distribute his information good. I focus on a simple environment where two distribution alternatives are available (digital and physical distribution), and investigate the causes and effects of the recent increase in the use of digital distribution. My analysis is based on a three-stage game where the creator can choose either (a) physical distribution through established distributors or retailers, or (b) direct digital distribution through the Internet. I find that the creator of the information good prefers digital distribution when there is (a) a high degree of substitutability between the digital good and the physical good, and (b) the creators direct marketing for the product is sufficiently effective. The equilibrium price of the digital good is lower than that of the physical good, while the quantity and the variety of goods traded are greater when the creator opts for digital distribution. Social welfare is increasing in the fraction of goods distributed through digital channels. (JEL code : D21, L11, L86)" @default.
- W1558756775 created "2016-06-24" @default.
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- W1558756775 date "2011-06-01" @default.
- W1558756775 modified "2023-09-22" @default.
- W1558756775 title "Distribution Channel Selection of the Creator of an Information Good" @default.
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