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Model: Entry of a Digital Goods Producer

In: Digitalization in Open Economies

Author

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  • Michael Vogelsang

    (University of Wuppertal)

Abstract

In this chapter, a theoretical framework of an access provider and producers of digital goods is presented. In Sect. 6.2, producers of pure digital goods compete for price-quality leadership. In Sect. 6.3, a platform provider of a digital, two-sided market is introduced. In both versions, a profit function for the digital producers in a closed economy is developed first. Then the economy is opened and the best choice of strategy for a digital goods producer located elsewhere in the world is deduced.

Suggested Citation

  • Michael Vogelsang, 2010. "Model: Entry of a Digital Goods Producer," Contributions to Economics, in: Digitalization in Open Economies, chapter 0, pages 129-140, Springer.
    • Handle: RePEc:spr:conchp:978-3-7908-2392-9_6
    DOI: 10.1007/978-3-7908-2392-9_6
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