the effects of technological change on quality and variety information products david waterman dept telecommunications indiana university 1229 e 7 th st bloomington in 47405 edu 812 855 6170 paper presented at 2004 international industrial organization conference april 23 24 northwestern chicago illinois revised 12 i am grateful to jun seok kang weiting lu byungho park xiaofei wang all whose excellent research assistance has contributed this an earlier version was 31 tprc annual september 19 21 2003 participants there also michael baye thom gillespie for comments 2 abstract empirical evidence shows that producers tv programs movies computer software may respond potentially cost saving by increasing their total production investments first copy each product possibly expense models show under reasonable assumptions about consumer demand technology a monopolist is fact induced increase as result either what define enhancing or reducing types advance