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On Selling Digital Goods

Speaker: Adrian Vetta
McGill University

November 19, 2013
Location: CII (Low) 3051
Hosted By: Dr. Elliot Anshelevich (x6491)


Suppose you are a monopolist for a digital good. What pricing mechanism should you use to sell the good? This sounds straightforward but there is a catch. Specifically, such a monopolist is a form of duropolist and Richard Coase (1972) conjectured that a duropolist has no monopoly power at all! We discuss this problem and the various pricing mechanisms available to a duropolist. We then examine the algorithmic implications involved and quantify the extent to which a duropolist can, in fact, generate higher profits than an equivalent monopolist. (Joint work with Peter Sloan and Gerardo Berbeglia.)

Last updated: September 16, 2013