Abstract

http://ssrn.com/abstract=2126808
 
 

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The Agency and Wholesale Models in Electronic Content Markets


Justin P. Johnson


Cornell University - Samuel Curtis Johnson Graduate School of Management

March 15, 2013


Abstract:     
I investigate strategic interactions and market outcomes in the "agency model" and "wholesale model" of sales. Adopting the agency model initially raises prices, and can (but need not) raise the profits of rival retailers. Nonetheless, consumers prefer the agency model. I relate my results to events in the market for electronic books.

Number of Pages in PDF File: 19

Keywords: e-books, agency model, Amazon, Apple, delegation, antitrust

JEL Classification: K00, K2, L00, L4

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Date posted: August 9, 2012 ; Last revised: March 21, 2013

Suggested Citation

Johnson, Justin P., The Agency and Wholesale Models in Electronic Content Markets (March 15, 2013). Available at SSRN: http://ssrn.com/abstract=2126808 or http://dx.doi.org/10.2139/ssrn.2126808

Contact Information

Justin P. Johnson (Contact Author)
Cornell University - Samuel Curtis Johnson Graduate School of Management ( email )
Ithaca, NY 14853
United States
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