Text

Time-Inconsistent Preferences and Strategic Self-Control in Digital Content Consumption

This study examines consumers’ time-inconsistent preferences in digital content consumption and their strategic self-control behaviors. We used a unique data set obtained from a major digital book platform in China, where consumers can pay either by chapter or a monthly subscription. A third of consumers consistently chose to pay by chapter, even though a monthly subscription would significantly reduce the monetary cost. We propose a dynamic structural model that incorporates time-inconsistent preferences and strategic self-control behaviors to rationalize such behavior. We first analytically demonstrate the existence of a unique equilibrium and show how, under steady states, overpaying for reading can be optimal for consumers. We then estimate the model from the data. The results show that there is a large segment of price-sensitive consumers who are willing to overpay to curb future consumption. Our counterfactuals show that eliminating the pay-per-chapter option would hurt consumer welfare and the platform’s profit. Eliminating the monthly subscription plan, however, would increase the platform’s profit but reduce consumer welfare. We introduce a novel nonlinear pricing plan with a volume surcharge and illustrate how it can benefit both consumers and the platform.

Ketersediaan

Informasi Detail

Judul Seri

MARKETING SCIENCE; Vol.41 No.3 May-June 2022

No. Panggil

-

Penerbit

: .,

Deskripsi Fisik

p. 616-636

Bahasa

English

ISBN/ISSN

-

Klasifikasi

NONE

Tipe Isi

-

Tipe Media

-

Tipe Pembawa

-

Edisi

-

Subjek

TIME INCONSISTENCY
DIGITAL CONTENT CONSUMPTION
CONSUMPTION STOCK
STRATEGIC SELF-CONTROL
PRICING PLANS

Info Detail Spesifik

https://doi.org/10.1287/mksc.2021.1318

Pernyataan Tanggungjawab

Shuo Zhang, Tat Y. Chan, Xueming Luo, Xiaoyi Wang

Versi lain/terkait

Lampiran Berkas

Komentar