Designing Content Reuse Licensing Arrangements and Pricing Mechanisms for Electronic Markets: An Experimental Investigation
Item
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Title
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Designing Content Reuse Licensing Arrangements and Pricing Mechanisms for Electronic Markets: An Experimental Investigation
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Identifier
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d_2009_2013:fe55b018f30b:11241
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identifier
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11513
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Creator
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Shang, Di,
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Contributor
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Karl R. Lang
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Date
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2012
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Language
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English
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Publisher
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City University of New York.
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Subject
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Management | Multimedia communications | Auctions | Content Reuse | Electronic Markets | Experimental Economics | Information Economics
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Abstract
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Electronic markets are becoming the prevalent platform for many firms in different industries to manage operations and implement business strategies to achieve greater efficiency. Changes in the market environment influence market performance and also present opportunities for new and innovative electronic market designs. In this doctoral dissertation I propose electronic market designs that incorporate some specific reuse licensing arrangements and dynamic pricing mechanisms and analyze their impact in terms of economic surplus and consumer choice. In study 1, I present an experimental design for an electronic market that offers producers the option to sell and buy content reuse licenses in a business-to-business (B2B) market. Study 2 extends this research and presents a business-to-consumer (B2C) market design in which producers bundle their content products with a consumer content reuse license that allows consumers to personalize content products in the post-purchase environment, both in the absence and in the presence of consumer sharing. Finally, in Study 3, I propose electronic market designs with two novel dynamic pricing mechanisms and compare their performance (in terms of economic surplus) with standard static pricing mechanisms that are typically used in electronic markets that use auctioning pricing methods.;In all three studies included in this dissertation, I employ the methods of experimental economics as my principle research methodology. Experimental economics is particularly suited to systematically evaluate the performance of different electronic market settings. With my experimental findings, I conclude that introducing content reuse licenses to digital product markets (in both the B2B and the B2C market design) significantly improves market performance as measured by producer surplus, consumer surplus, as well consumer choice. The social welfare benefits are robust in the presence of low to moderate consumer sharing but are destroyed when the level of piracy crosses a tipping point, resulting in a wealth transfer away from producers. In addition, the experimental findings of Study 3 demonstrate that while the two proposed dynamic pricing mechanisms are viable it also shows that their efficiency is implementation-dependent and that other factors besides the prices' dynamic nature are important for determining market performance.
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Type
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dissertation
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Source
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2009_2013.csv
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degree
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Ph.D.
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Program
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Business
