What does digital distribution do to a supply/demand curve?

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MrPopo
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Re: What does digital distribution do to a supply/demand cur

Post by MrPopo »

sabrage wrote:
MrPopo wrote:
sabrage wrote:I consider all digital download games rentals, and I pay accordingly.
GOG.com says hi.
I've yet to pay more than $3 for a game on GoG.
That doesn't say much when the average price is $6 and they have a lot of sales.
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sabrage
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Re: What does digital distribution do to a supply/demand cur

Post by sabrage »

MrPopo wrote:That doesn't say much when the average price is $6 and they have a lot of sales.
You mean it doesn't say much besides specifically proving my point, right?
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Erik_Twice
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Re: What does digital distribution do to a supply/demand cur

Post by Erik_Twice »

The model you are using doesn't apply. Supply isn't fixed, and there's no perfect competition because each product is a monopoly. (No two people manufacture the same game). It's a model, a simplification, but not a law!

It's easier to think this way: You have something I want. You can set a price but I decide what it's worth and if that worth isn't enough to cover the price, I won't buy it. Normally you would want to sell your stuff so you set a competitive price.
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Zing
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Re: What does digital distribution do to a supply/demand cur

Post by Zing »

It would seem to be about competing for the consumer's money. Everyone has a fixed amount of money to spend on video games. With unlimited supply, it's just a matter of where this money is spent.
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