IPcentral Weblog
  The DACA Blog

Monday, February 1, 2010

Complementary Goods and Debates about E-Book/Music/Video Pricing
(previous | next)

During a recent blog post on William Patry's self-parodying, dishonest, and hate-filled book Moral Panics and the Copyright Wars, ("Copyright Wars"), I argued that disputes between creative industries and technologists who create new means to access creative works tend to be notoriously complex because creators of new content and creators of new content-access technologies are producers of complementary goods.

Producers of complementary goods do not want to destroy each other, but they would love to commoditize each other. In other words, a producer of a complementary good should want to drive the price of any complements produced by others as close as possible to marginal cost in order to maximize the share of mutually-created value that it could potentially capture.

For a concrete example of what I was talking about, review Clash of the Titans, an interesting, opinionated, and perceptive account of the recent clash between Amazon.com and Macmillan over ebook pricing. It represents a thoughtful analysis of the complexities lurking behind these debates. Moreover, the issues outlined are relevant to debates about online pricing of all types of expressive works--music, video, news, periodicals, etc.

Thanks to Marginal Revolution for highlighting this post.

PS: Speaking of Patry's vile book Copyright Wars, I just belatedly perceived another of its many glaring ironies. Around a year ago, the unhinged Patry was putting the finishing touches upon its false and hate-filled claims, (e.g., "I cannot think of a single significant innovation in either the creation or distribution of works of authorship that owes its origins to the copyright industries."), in order to depict an ugly alternate reality in which copyrights had so failed to support the production of innovative works that they should be wholly repealed: "In other areas where a government monopoly, created to serve the public interest, is blatantly abused over a long period of time, it is taken away" (p.199).

Meanwhile, back on Earth, funding provided by copyright industries was empowering Director James Cameron to put the finishing touches on the years of work and the millions of dollars in R&D required to create the beautiful alternate reality depicted in his wildly popular film Avatar. A finer testament to the vacuity of Patry's rabid, unreasoned hate is scarcely conceivable....

posted by Thomas Sydnor @ 11:58 AM | Antitrust & Competition Policy , Books & Book Reviews , Copyright , E-commerce , IP , Innovation , Internet , Mass Media , What We're Reading

Share |

Link to this Entry | Printer-Friendly | Email a Comment | Post a Comment(3)


ugg pas cher action a été devraient augmenter de près p 16 dump cent.

Posted by: ugg pas cher at November 25, 2013 4:58 AM

Complementary propitiouss choose receive a pessimistic intersect resilience of need. If the ante of digit nice aggravates, need for both complementary propitiouss inclination tumble. The also intrinsically linked the propitiouss are, the superior devise be the bridge tone of need.

Posted by: personal statement for dental school at February 10, 2014 5:04 AM

"Their argument is based on a single premise, which I think is flawed," Rubio said, according to the Tampa Bay Times. "That is these people are disproportionately poor because they have no education, and they will be poor for the rest of their lives in the U.S. Quite frankly that's not the immigration experience in the U.S. That's certainly not my family's experience in the U.S. The folks described in that report are my family. My mother and dad didn't graduate high school, and I would not say they were a burden on the United States."

Posted by: vivienne westwood bags at April 23, 2014 2:27 AM

Post a Comment:

Blog Main
RSS Feed  
Recent Posts
  EFF-PFF Amicus Brief in Schwarzenegger v. EMA Supreme Court Videogame Violence Case
New OECD Study Finds That Improved IPR Protections Benefit Developing Countries
Hubris, Cowardice, File-sharing, and TechDirt
iPhones, DRM, and Doom-Mongers
"Rogue Archivist" Carl Malamud On How to Fix Gov2.0
Coping with Information Overload: Thoughts on Hamlet's BlackBerry by William Powers
How Many Times Has Michael "Dr. Doom" Copps Forecast an Internet Apocalypse?
Google / Verizon Proposal May Be Important Compromise, But Regulatory Trajectory Concerns Many
Two Schools of Internet Pessimism
GAO: Wireless Prices Plummeting; Public Knowledge: We Must Regulate!
Archives by Month
  September 2010
August 2010
July 2010
June 2010
  - (see all)
Archives by Topic
  - A La Carte
- Add category
- Advertising & Marketing
- Antitrust & Competition Policy
- Appleplectics
- Books & Book Reviews
- Broadband
- Cable
- Campaign Finance Law
- Capitalism
- Capitol Hill
- China
- Commons
- Communications
- Copyright
- Cutting the Video Cord
- Cyber-Security
- Digital Americas
- Digital Europe
- Digital Europe 2006
- Digital TV
- E-commerce
- e-Government & Transparency
- Economics
- Education
- Electricity
- Energy
- Events
- Exaflood
- Free Speech
- Gambling
- General
- Generic Rant
- Global Innovation
- Googlephobia
- Googlephobia
- Human Capital
- Innovation
- Intermediary Deputization & Section 230
- Internet
- Internet Governance
- Internet TV
- Interoperability
- IP
- Local Franchising
- Mass Media
- Media Regulation
- Monetary Policy
- Municipal Ownership
- Net Neutrality
- Neutrality
- Non-PFF Podcasts
- Ongoing Series
- Online Safety & Parental Controls
- Open Source
- PFF Podcasts
- Philosophy / Cyber-Libertarianism
- Privacy
- Privacy Solutions
- Regulation
- Search
- Security
- Software
- Space
- Spectrum
- Sports
- State Policy
- Supreme Court
- Taxes
- The FCC
- The FTC
- The News Frontier
- Think Tanks
- Trade
- Trademark
- Universal Service
- Video Games & Virtual Worlds
- VoIP
- What We're Reading
- Wireless
- Wireline
Archives by Author
PFF Blogosphere Archives
We welcome comments by email - look for a link to the author's email address in the byline of each post. Please let us know if we may publish your remarks.

The Progress & Freedom Foundation