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Understanding the Challenges of the Digital Economy: The Nature of Digital Goods

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  • Thierry RAYNA

    (Imperial College London)

Abstract

This article investigates the economic nature and characteristics of digital goods. Such goods are, due to their replicability, shown to be public goods (albeit in an evolutionary way) and durable goods. Furthermore, the content of such goods, combined with their durability, makes them experience goods. While only one of these characteristics would be sufficient to create difficulties for producers and lead to market failure, this article demonstrates that each of the characteristics reinforces the other. The framework presented in the article is then applied to two important issues: the new trend of massive consumer piracy and the overall problem of value of digital goods

Suggested Citation

  • Thierry RAYNA, 2008. "Understanding the Challenges of the Digital Economy: The Nature of Digital Goods," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(71), pages 13-36, 3rd quart.
    • Handle: RePEc:idt:journl:cs7101
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    File URL: http://repec.idate.org/RePEc/idt/journl/CS7101/CS71_RAYNA.pdf
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    References listed on IDEAS

    as
    1. Thierry RAYNA & Ludmila STRIUKOVA, 2008. "White Knight or Trojan Horse? The Consequences of Digital Rights Management for Consumers, Firms and Society," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(69), pages 109-126, 1st quart.
    2. Thierry Rayna, 2006. "IPR Protection in the High-Tech Industries: A Model of Piracy," Bristol Economics Discussion Papers 06/593, School of Economics, University of Bristol, UK.
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    Cited by:

    1. Jing Lan & Yuge Ma & Dajian Zhu & Diana Mangalagiu & Thomas F. Thornton, 2017. "Enabling Value Co-Creation in the Sharing Economy: The Case of Mobike," Sustainability, MDPI, vol. 9(9), pages 1-20, August.
    2. Thierry Rayna & Ludmila Striukova, 2021. "Involving Consumers: The Role of Digital Technologies in Promoting ‘Prosumption’ and User Innovation," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(1), pages 218-237, March.
    3. Acar, Kemal Veli, 2017. "Child abuse materials as digital goods: Why we should fear new commercial forms," Economics Discussion Papers 2017-15, Kiel Institute for the World Economy (IfW Kiel).
    4. Marcin Wieczerzycki, 2015. "Produkt cyfrowy w świetle jakościowej teorii informacji i koncepcji hylemorfizmu," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 1, pages 129-146.
    5. Kim, Jongbum & Seo, Jeonghun, 2017. "User Resistance to Digital Goods: a Case of E-books," 14th ITS Asia-Pacific Regional Conference, Kyoto 2017: Mapping ICT into Transformation for the Next Information Society 168502, International Telecommunications Society (ITS).
    6. Ran Xu & Yeong-Gil Kim & Chenglei Liang, 2024. "The Effect of Digitization on Economic Sustainable Growth in Shandong Province of China," Sustainability, MDPI, vol. 16(16), pages 1-21, August.
    7. Devesa Fernández, María & Herrero Prieto, Luis César & Sanz Lara, José Ángel, 2009. "Análisis económico de la demanda de un festival cultural/," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 27, pages 139-160, Abril.
    8. Li, Sen & Chen, Yan, 2023. "How nonfungible tokens empower business model innovation," Business Horizons, Elsevier, vol. 66(4), pages 543-554.
    9. Rayna, Thierry & Striukova, Ludmila, 2016. "From rapid prototyping to home fabrication: How 3D printing is changing business model innovation," Technological Forecasting and Social Change, Elsevier, vol. 102(C), pages 214-224.

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