how does technological advance affect the quality and variety of information products david waterman dept telecommunications indiana university 1229 e 7 th st bloomington in 47405 edu 812 855 6170 january 29 2006 jel classifications d24 o33 l82 l86 earlier versions this paper were presented at 31 annual tprc conference washington dc october 2003 2004 international industrial organization chicago april 23 24 nber all universities on economics economy cambridge ma may 8 i am grateful to participants these conferences michael baye thom gillespie fabio manenti steven wildman for comments especially indebted xiaofei wang excellent research assistance 2 abstract anecdotal evidence suggests that producers tv programs movies computer software respond potentially cost saving change by increasing rather than reducing their total production investments first copy each product possibly expense comparative statics show under reasonable assumptions about consumer demand technology a monopolist is fact induced increase as result either what are defined
