Equilibrium Pricing of Digital Goods via a New Market Model

The problem of arriving at a principled method of pricing goods and services was very satisfactorily solved for conventional goods; however, this solution is not applicable to digital goods. After taking into consideration idiosyncrasies of the digital realm, we give a market model that is appropriate for the digital setting, and a notion of equilibrium for it. We also prove existence of equilibrium for our market model.

• Type: Journal
• Year: 2010
• Where: CORR
• Authors: Kamal Jain, Vijay V. Vazirani
• Keywords: Consideration Idiosyncrasies, CORR 2010, Digital, Education, Market Model