Business Models and the Coase Conjecture

(a) Describe the Coase Conjecture and explain how it relates to the durability or perishability of goods. [6 marks]

(b) Digital books are a durable good. Discuss differences between selling digital books as a digital good and/or as a digital service from the perspective of a seller. [6 marks]

(c) Digital newspapers are also durable goods. There are important similarities and differences between digital books and digital newspapers. Discuss differences between digital books and digital newspapers. In your answer, take into account the value that users derive from consuming digital books and digital newspapers. [8 marks]

(d) Building on your answer to c), discuss similarities and differences in selling digital books and digital newspapers. [6 marks]