Pricing schemes for digital content with DRM mechanisms

Abstract

In this paper. utilizing game-theoretic model, we examine the impact of collaborative structure, content quality, and network environment on the development of pricing scheme and DRM protection policy of digital content. DRM protection level decreases and pirating activities becomes relatively tolerable as the content provider and platform provider operate collaboratively. Depending on the market structure, higher content quality may strengthen or weaken the adoption of DRM. However, it would seem that, as the network environment becomes more decentralized and uncontrolled, weaker DRM protection should be a better strategy. (C) 2009 Elsevier B.V. All rights reserved.