The Economics of Digital Business Models: A Framework for Analyzing the Economics of Platforms

Review of Network Economics, Vol. 6, No. 2, June 2007

34 Pages Posted: 27 Feb 2008  

Eric Brousseau

Université Paris X Nanterre - Department of Economics

Thierry Pénard

Université de Rennes I - Faculte de Sciences Economiques; Centre de Recherche en Économie et Management (CREM); Armorican Mole for Research on the Information Society and Uses of the Internet

Abstract

The paper proposes an analytical framework for comparing different business models for producing information goods and digital services. It is based on three dimensions that also refer to contrasted literature: the economics of matching, the economics of assembling and the economics of knowledge management. Our framework attempts to identify the principal trade-offs at the core of choices among alternative digital business models, and to compare them in terms of competitiveness and efficiency. It also highlights the role played by users in the production of information goods and competition with pure suppliers.

Keywords: Digital economics , Internet , Business Models

JEL Classification: L1 , L8

Suggested Citation

Brousseau, Eric and Pénard, Thierry, The Economics of Digital Business Models: A Framework for Analyzing the Economics of Platforms. Available at SSRN: https://ssrn.com/abstract=1086370

Eric Brousseau

Université Paris X Nanterre - Department of Economics ( email )

Nanterre Cedex, 92001
France
+33140975922 (Phone)
+33140975907 (Fax)

HOME PAGE: http://economix.u-paris10.fr/

Thierry Pénard (Contact Author)

Université de Rennes I - Faculte de Sciences Economiques ( email )

7, Place Hoche
35000 Rennes
France

Centre de Recherche en Économie et Management (CREM) ( email )

7 place Hoche
Rennes, Bretagne 35065
France

Armorican Mole for Research on the Information Society and Uses of the Internet ( email )

France

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