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Seoul Journal of Economics - Vol. 30 , No. 2
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[ Article ]
Seoul Journal of Economics - Vol. 30, No. 2, pp. 179-187
Abbreviation: SJE
ISSN: 1225-0279 (Print)
Print publication date 30 May 2017
Received 21 Jun 2016 Revised 05 Sep 2016 Accepted 18 Nov 2016

Experience Goods Monopolist: Freeware as an Advertisement
Le Duc Niem
Le Duc Niem, Department of Economics, Tay Nguyen University, 567 Le Duan Street, Buon Ma Thuot City, Vietnam, Tel: 84-964061111, Fax: 84-5003825184 (leniem@gmail.com)

JEL Classification: L86, D83, D42

Abstract

This study examines the situation in which a monopolist offers freeware as an advertisement for the increase of demand to maximize profit even though the existence of such freeware will reduce the power of the monopolist in the market. This study proves that the successful application of freeware is dependent on the number of potential consumers and the optimal quality design for freeware in this situation uniquely exists.

Keywords: Freeware, Software, Advertisement
Acknowledgments

The author gratefully acknowledges helpful comments and suggestions of anonymous referees of this journal.

References
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