Digital: Ex Post

August 10, 2005

Digital Rights Management and the Pricing of Digital Products

Digital Rights Management and the Pricing of Digital Products: "As it becomes cheaper to copy and share digital content, vendors are turning to technical protections such as encryption. We argue that if protection is nevertheless imperfect, this transition will generally lower the prices of content relative to perfect legal enforcement. However, the effect on prices depends on whether the content providers use independent protection standards or a shared one, and if shared, on the governance of the system. "

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