Digital Rights Management and the Pricing of Digital Products

Park, Yooki and Scotchmer, Suzanne, "Digital Rights Management and the Pricing of Digital Products" (October 2004). NET Institute Working Paper No. 04-09. Available at SSRN:

Abstract:

Digital products such as movies, music and computer software are protected both by self-help measures such as encryption and copy controls, and by the legal right to prevent copying. We explore how digital rights management and other technical protections affect the pricing of content, and consequently, why content users, content vendors, and antitrust authorities might have different views on what technical capabilities should be deployed. We discuss the potential for collusion through technology.

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