The paper attempts at explaining some of market strategies of monopolies in information product markets. A special case is considered where a particular information product, supplied by a monopoly, has captured a limited market share, or where the overall market is limited by a particular number of users. The only way for the supplier to keep this market share, and to continue extracting revenue, is to eventually offer a new version of the information product. The customers then accept the new version only if it has some new quality characteristics they are prepared to pay for. Using a theoretical model, we derive some conclusions why the incentives of monopolies to contribute to the quality of their new versions of information products are limited.
Available at: http://works.bepress.com/luba_torlina/7/