"Download for Free"
Boom, Anette ;  ;  Universität <Berlin, Freie Universität> / Fachbereich Wirtschaftswissenschaft

Main title"Download for Free"
SubtitleWhen do providers of digital goods offer free samples?
AuthorBoom, Anette
EditorUniversität <Berlin, Freie Universität> / Fachbereich Wirtschaftswissenschaft
No. of Pages18 S.
Series ; 2004,28 : Volkswirtschaftliche Reihe
Classification (DDC)330 Economics
Also published in
AbstractIn a monopoly setting where consumers cannot observe the quality
of the product we show that free samples which are of a lower quality
than the marketed digital goods are used together with high prices
as signals for a superior quality if the number of informed consumers
is small and if the di®erence between the high and the low quality
is not too small. Social welfare is higher, if the monopolist uses also
free samples as signals, compared to a situation where he is restricted
to pure price signalling. Both, the monopolist and consumers bene¯t
from the additional signal.
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FU DepartmentDepartment Business and Economics
Year of publication2004
Type of documentBook
Terms of use/Rights Nutzungsbedingungen
Created at2008-07-08 : 11:44:52
Last changed2016-01-05 : 02:38:04
Static URLhttp://edocs.fu-berlin.de/docs/receive/FUDOCS_document_000000000486