A Pricing Mechanism for Digital Content Distribution Over Computer Networks.

Author List: Lang, Karl Reiner; Vragov, Roumen;
Journal of Management Information Systems, 2005, Volume 22, Issue 2, Page 121-139.
This paper uses modified economic growth theory to compare and contrast two currently available ways of digital content distribution: the client-server model and the peer-to-peer (P2P) model. We describe a monopolistic pricing scheme for distributing digital content over P2P networks that rewards peer users who actively participate in the distribution process. Our results show that digital distribution through a P2P network is more profitable and more efficient than in the corresponding client-server setting, if the pricing mechanism used provides strong incentives to users to share content. The basic results hold when the model is extended to include time-variant preferences across generations of consumers, and when the monopolist performs price discrimination based on generations. Some practical implications from the theoretical analysis are also discussed.
Keywords: client-server networks; content sharing; digital content distribution; information goods; monopolistic seller; peer-to-peer networks; pricing; user participation incentives
Algorithm:

List of Topics

#5 0.179 consumer consumers model optimal welfare price market pricing equilibrium surplus different higher results strategy quality cost lower competition firm paper
#249 0.136 network networks social analysis ties structure p2p exchange externalities individual impact peer-to-peer structural growth centrality participants sharing economic ownership embeddedness
#19 0.130 content providers sharing incentive delivery provider net incentives internet service neutrality broadband allow capacity congestion revenue cost efficient enhanced provides
#195 0.130 pricing services levels level on-demand different demand capacity discrimination mechanism schemes conditions traffic paper resource expected based constraints solution latency
#23 0.102 channel distribution demand channels sales products long travel tail new multichannel available product implications strategy allows internet revenue technologies times
#191 0.095 model models process analysis paper management support used environment decision provides based develop use using help literature mathematical presented formulation
#178 0.084 digital divide use access artifacts internet inequality libraries shift library increasingly everyday societies understand world initiative initiatives embedded community dimensions