Competing with Piracy: A Multichannel Sequential Search Approach

摘要: We consider an online market where consumers may obtain digital goods from two mutually exclusive channels: a legitimate channel consisting of many law-abiding retailers and piracy services. analyze consumer choice, retailer strategy, control using sequential-search approach information acquisition is costly for some (nonshoppers), yet costless others (shoppers). First, we show that nonshopper's choice determined by simple comparison reservation prices. Second, how threats affect in-channel pricing among retailers. If the competition intensity high, does not pricing. medium, respond to giving up shoppers and, surprisingly, raising low, loses as well nonshoppers channel. Third, several mechanisms fi...