Free vs fee: a model of price discrimination

I study the trade-off faced by a firm that operates on a platform and generates revenues from subscriptions and advertising in an economy with heterogeneous agents. I present a basic model with a no-discrimination policy, as it is the main business strategy many firms adopt in this field. In this...

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Autor principal: Cufré, Maia
Formato: Tesis de maestría acceptedVersion
Lenguaje:Inglés
Publicado: Universidad Torcuato Di Tella 2025
Materias:
Acceso en línea:https://repositorio.utdt.edu/handle/20.500.13098/13213
https://maiacufre.github.io/FreeVsFeeFiguresIndex
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id I57-R163-20.500.13098-13213
record_format dspace
spelling I57-R163-20.500.13098-132132025-01-09T07:00:43Z Free vs fee: a model of price discrimination Cufré, Maia Estrategia comercial Commercial strategy Medios de comunicación de masas Mass Media Trade-off I study the trade-off faced by a firm that operates on a platform and generates revenues from subscriptions and advertising in an economy with heterogeneous agents. I present a basic model with a no-discrimination policy, as it is the main business strategy many firms adopt in this field. In this scenario, the firm can choose a subscription fee and a paywall (readings free of charge). I show that whether or not it is optimal to use these tools depends on the consumer types’ distribution. In addition, I extend this structure by considering a screening model that allows the firm to offer different contracts to different types of consumers. Such a policy allows the firm to increase its profits. Finally, I conduct an empirical analysis with a unique database from one of the leading traditional Argentinian media outlets. I calibrate the model and study the optimality of the firm policy choice. I show that by changing the policy in the margin, the firm can increase its profits. In addition, I suggest a few changes in the firm’s policy such as price discrimination based on location and free access to some notes. Figuras disponibles en la url de Github 2025-01-06T15:17:11Z 2025-01-06T15:17:11Z 2024 info:eu-repo/semantics/masterThesis info:ar-repo/semantics/tesis de maestría info:eu-repo/semantics/acceptedVersion https://repositorio.utdt.edu/handle/20.500.13098/13213 https://maiacufre.github.io/FreeVsFeeFiguresIndex eng Tesis y Trabajos Finales de la Universidad Torcuato Di Tella info:eu-repo/semantics/openAccess https://creativecommons.org/licenses/by-sa/2.5/ar/ 33 p. application/pdf application/pdf application/pdf Universidad Torcuato Di Tella
institution Universidad Torcuato Di Tella
institution_str I-57
repository_str R-163
collection Repositorio Digital Universidad Torcuato Di Tella
language Inglés
orig_language_str_mv eng
topic Estrategia comercial
Commercial strategy
Medios de comunicación de masas
Mass Media
Trade-off
spellingShingle Estrategia comercial
Commercial strategy
Medios de comunicación de masas
Mass Media
Trade-off
Cufré, Maia
Free vs fee: a model of price discrimination
topic_facet Estrategia comercial
Commercial strategy
Medios de comunicación de masas
Mass Media
Trade-off
description I study the trade-off faced by a firm that operates on a platform and generates revenues from subscriptions and advertising in an economy with heterogeneous agents. I present a basic model with a no-discrimination policy, as it is the main business strategy many firms adopt in this field. In this scenario, the firm can choose a subscription fee and a paywall (readings free of charge). I show that whether or not it is optimal to use these tools depends on the consumer types’ distribution. In addition, I extend this structure by considering a screening model that allows the firm to offer different contracts to different types of consumers. Such a policy allows the firm to increase its profits. Finally, I conduct an empirical analysis with a unique database from one of the leading traditional Argentinian media outlets. I calibrate the model and study the optimality of the firm policy choice. I show that by changing the policy in the margin, the firm can increase its profits. In addition, I suggest a few changes in the firm’s policy such as price discrimination based on location and free access to some notes.
format Tesis de maestría
Tesis de maestría
acceptedVersion
author Cufré, Maia
author_facet Cufré, Maia
author_sort Cufré, Maia
title Free vs fee: a model of price discrimination
title_short Free vs fee: a model of price discrimination
title_full Free vs fee: a model of price discrimination
title_fullStr Free vs fee: a model of price discrimination
title_full_unstemmed Free vs fee: a model of price discrimination
title_sort free vs fee: a model of price discrimination
publisher Universidad Torcuato Di Tella
publishDate 2025
url https://repositorio.utdt.edu/handle/20.500.13098/13213
https://maiacufre.github.io/FreeVsFeeFiguresIndex
work_keys_str_mv AT cufremaia freevsfeeamodelofpricediscrimination
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