Internet Exchanges for Used Books: An Empirical Analysis of Product Cannibalization and Welfare Impact
Ghose, Anindya, Michael D. Smith, Rahul Telang. 2006. Internet Exchanges for Used Books: An Empirical Analysis of Product Cannibalization and Welfare Impact. Information Systems Research, 17(1) 3-19. (Runner-up for Best Published Paper in Information Systems Research in 2006.)
QUESTION: To what degree do used product markets cannibalize new-product sales for books sold on Amazon?
RESULT: “Only 16% of used-book sales at Amazon cannibalize new-book purchases. The remaining 84% of used-book sales apparently would not have occurred at Amazon’s new-book prices.”
Why Digital Media Require A Strategic Rethink
Smith, Michael D., Rahul Telang. 2012. Why Digital Media Require A Strategic Rethink. Harvard Business Review. Idea Watch, October.
QUESTION: What strategies can firms use to respond to the new opportunities and challenges afforded by digital channels?
RESULT: Our research finds that making content available in digital channels has very little short-term impact on sales of physical products (e.g., DVDs), and that availability in legal digital channels can significantly reduce the demand for pirated content.
Internet Effects on Retail Markets
Smith, Michael D., Alejandro Zentner. 2016. Internet Effects on Retail Markets, Basker, ed. Handbook on the Economics of Retail and Distribution, Chapter 18 (pp. 433-454), Edward Elgar Publishing, Cheltenham, UK. (http://ssrn.com/abstract=2594807)
QUESTION: How have digital channels impacted marketing practice in the entertainment industries?
RESULT: The paper summarizes the findings in the academic literature regarding the impact of online markets on markets for long tail and blockbuster products, on the importance of digital word-of-mouth for promoting content, and on overall Internet consumer behavior
An Empirical Analysis of Digital Music Bundling Strategies
Danaher, Brett, Yan Huang, Michael D. Smith, Rahul Telang. 2014. An Empirical Analysis of Digital Music Bundling Strategies. Management Science, Special Issue on Business Analytics, 60(6) 1413-1433.
QUESTION: Is the practice of unbundling singles from albums in digital marketplaces, good or bad for artists, labels, and consumers?
RESULT: Unbundling “Tiered pricing coupled with reduced album pricing increases revenue to the labels by 18% relative to uniform pricing policies traditionally preferred by digital marketplaces while also increasing consumer surplus by 23%.”
The Impact of eBook Distribution on Print Sales: Analysis of a Natural Experiment
Hu, Yu, Michael D. Smith. 2012. The Impact of eBook Distribution on Print Sales: Analysis of a Natural Experiment. (http://ssrn.com/abstract=1966115)
QUESTIONS: Does delaying the release of ebooks impact sales of print books?
RESULTS: “Delaying ebook availability results in a small (and statistically insignificant) increase in print sales and a large decrease in total ebook sales.”