Incentive Systems in Multi-Level Markets for Virtual Goods
<|reference_start|>Incentive Systems in Multi-Level Markets for Virtual Goods: As an alternative to rigid DRM measures, ways of marketing virtual goods through multi-level or networked marketing have raised some interest. This report is a first approach to multi-level markets for virtual goods from the viewpoint of theoretical economy. A generic, kinematic model for the monetary flow in multi-level markets, which quantitatively describes the incentives that buyers receive through resales revenues, is devised. Building on it, the competition of goods is examined in a dynamical, utility-theoretic model enabling, in particular, a treatment of the free-rider problem. The most important implications for the design of multi-level market mechanisms for virtual goods, or multi-level incentive management systems, are outlined.<|reference_end|>
@article{schmidt2004incentive,
    title={Incentive Systems in Multi-Level Markets for Virtual Goods},
    author={Andreas U. Schmidt},
    journal={arXiv preprint arXiv:cs/0409028},
    year={2004},
    archivePrefix={arXiv},
    eprint={cs/0409028},
    primaryClass={cs.GT cs.CY}
}