A Study of Using Digital Rights Management to Differentiate Information Goods

• Main Authors: Yao-Chin Hsu, 許堯欽
• Other Authors: Chi-Chun Lo
• Format: Others
• Language: en_US
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/09463983628119236328

碩士 === 國立交通大學 === 資訊管理研究所 === 94 === The Digital Rights Management (DRM) technology used to restrict the access to the software, music, or other digital content, (For example, the music purchased from Apple’s iTunes Store, have some DRM schemes built in to limit the number of devices they may be played on. ) brings the information goods with an extra attribute which could make the difference to consumers. Such an attribute was called “flexibility”. Intuitively, we may think the higher flexibility, the higher price that a consumer prefers to pay. We suggest that the firm could use flexibility to differentiate for more profit. In this paper, we adapted the original model with a price to a corresponding flexibility for the differentiation pricing version, a two-market-segmentation based model. There are two pairs of pricing strategies in the new model, and then the result is that the firm can make more profit from differentiating in a monopoly market and a specific range of permeability.