Work detail

Form and mechanisms of Internet market with digital goods for near zero marginal cost

Author: Bc. Ondřej Šindelka
Year: 2008 - summer
Leaders: † Ing. Zdeněk Hrubý CSc.
Consultants:
Work type: Bachelors
Language: Czech
Pages: 78
Awards and prizes:
Link:
Abstract: Within the market with digital goods or services on the Internet are marginal cost approaching zero. How does the market react on such setting and how does the market shape itself? What are the factors influencing the digital market shape? Does the market with digital goods correspond to the perfect competition market? These questions represent the genesis and field of interest of this bachelor thesis.
Constituent product elements of digital goods and trading mechanisms are described in detail in the thesis. The emphasis is put on the type of market model we could use when describing the digital market on the internet. Transaction costs importance is visible within the discussed simple model of third degree price discrimination on the audiovisual market. Different parametric settings leading to discriminating behavior are recognized. We put empirical market data into the model and discuss the profitability of the discrimination. The very end of the thesis deals with dominant trends of future market development.
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