Business, Management and Accounting
4 years ago

Monopolistic software upgrades hike prices, reduce consumer choice, but boost profits.

1 view
RePEc: Research Papers in Economics
Software Upgrades under Monopoly
Jiří Střelický, Krešimir Žigić

Paper Summary

Price discrimination in a monopolistic software market leads to higher quality software but also higher prices. This discrimination does not increase sales or the number of consumers, but it does increase the developer's profit and social welfare.

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