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The Pricing of Digital Goods in the Music Production Software Industry

The Pricing of Digital Goods in the Music Production Software Industry

This research paper set out to investigate the factors affecting the pricing of non-tangible, non-rivalrous, digital software goods – a uniquely modern economic phenomenon of ever-increasing prominence in the transition to more and more digital economies – from a practical standpoint. Real world data from a consumer survey of 553 respondents and a producer survey of 12 firms in the music production software market – an ideal example of general software markets due to its diversity – was analyzed to discuss the degree of the market’s conformity to a theoretical model for software goods. The findings include the ambiguous role of piracy, product-specific market structures, an argument for delayed marginal costs and an explanation for general price rigidity regardless of varying costs.

Miro Keimiöniemi

19 years

Stand81
ProjectSocial sciences-03
CountryFinland

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