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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Universidad Torcuato Di Tella
2025
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Acceso en línea: | https://repositorio.utdt.edu/handle/20.500.13098/13213 https://maiacufre.github.io/FreeVsFeeFiguresIndex |
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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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1823894537013035008 |