Price discrimination, copyright law, and technological innovation: Evidence from the introduction of DVDs

• 成果类型: Article
• 署名作者: Mortimer, Julie Holland
• 署名单位: Harvard University; National Bureau of Economic Research
• 刊物名称: QUARTERLY JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0033-5533
• DOI: 10.1162/qjec.122.3.1307
• 发表日期: 2007
• 页码: 1307-1350
• 关键词: competition; INFORMATION; monopoly

摘要

U. S. copyright law effectively prevents direct price discrimination for copyright holders that sell to different markets. In response, these firms can engage in indirect price discrimination. I derive theoretical predictions about the use of indirect price discrimination, and I analyze how optimal pricing strategies differ for different products. Using data on VHS and DVD movie distribution, I find that firms' pricing choices are consistent with the predictions of theory and that firms' use of indirect price discrimination benefits consumers (but harms ancillary retailers). Finally, I examine what optimal pricing strategies might look like in a legal environment that permits direct price discrimination.