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Music Platform Competition and Advertising Strategy in the Duopoly Music Industry

In: Proceedings of 2013 4th International Asia Conference on Industrial Engineering and Management Innovation (IEMI2013)

Author

Listed:
  • Yi-Shin Lin

    (Ming Dao University)

  • Yu-Shing Chang

    (Ming Dao University)

Abstract

Information technologies “weed out” the old and bring forth new industries, such as the Otaku Economy Markets and Knowledge Sharing Platforms, and influence traditional industries, especially digitization products. Digital industries also encounter several challenges (e.g., piracy and virtual channels) because of the popularization of the Internet. Hence, we used a game theory approach to compare two competing music platforms with and without paid services. We show that the paid music platform does not earn excess profits, and the relationship between socially optimal advertising and basic utility of virtual digital products are parabolically related.

Suggested Citation

  • Yi-Shin Lin & Yu-Shing Chang, 2014. "Music Platform Competition and Advertising Strategy in the Duopoly Music Industry," Springer Books, in: Ershi Qi & Jiang Shen & Runliang Dou (ed.), Proceedings of 2013 4th International Asia Conference on Industrial Engineering and Management Innovation (IEMI2013), edition 127, pages 433-443, Springer.
    • Handle: RePEc:spr:sprchp:978-3-642-40060-5_42
    DOI: 10.1007/978-3-642-40060-5_42
    as

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