OPTIMAL DUAL CHANNEL STRUCTURE FOR DIGITAL PRODUCTS

摘要

Digital products can be delivered in two distinctive channels: the business-to-consumer (B2C) online storefront and a peer-to-peer (P2P) offline transaction through personal computing devices such as PDAs and portable media players. This paper studies the dual channel pricing and distribution strategies for digital products. Based on a dynamic diffusion model that captures the different channel dynamics, we compare three incentive mechanisms to analyze the integrated channel design challenges.