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In this paper, we model the potential for streaming music, a non-durable product, to upend and displace durable music sales. As the popularity of streaming music increases producers will switch their focus to the non-durable channel. We identify conditions under which the changing industry will...
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We model the potential for a company bundling high search cost information goods to obtain an advantage over conventional individual sales. Using the streaming video industry as an example, we model the search costs associated with films. We find that bundling services can increase a user's...
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We model the potential for a company bundling experience goods to obtain an advantage over conventional individual sales. Using the streaming video industry as an example, we consider the unknown attributes of films. Bundling services can be beneficial by guiding consumers' product selections,...
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