Univ. Texas research: Downloads a boon for industry



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Internet-Content-Digital Commerce
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Univ. Texas research: Downloads a boon for industry
By Newshare staff
May 23, 2002, 17:54

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Stan J. Liebowitz, an economics professor at the Management School of the University of Texas says his research shows that digital downloads will end up being a boon for the music and content industries.


"Record companies are right to fear Napster. The Internet, however, should prove a boon to them, once they can get the right pricing," he writes. "As was true in the video example, record companies need to learn that they are currently charging way too much for music downloads. When they learn that it is more profitable to lower their prices, even if it largely destroys record stores, the old distribution methodology will be seen for what it is -- primitive and inefficient."

Professor Liebowitz received his doctorate from UCLA and BA from Johns Hopkins University. Prior to his current position, he has been on the faculty at the University of Rochester, University of Chicago, and University of Western Ontario. He is the author of more than 30 articles and four books/monographs.


He has written on subjects such as network effects and lock-in, the impact of technology on copyright, tie-in sales, measuring monopoly power, and mortgage discrimination. His current research interests center on the choice of products in markets thought to exhibit network effects. His most recent work is a book co-authored with Stephen Margolis titled "Winners, Losers and Microsoft: Competition and Antitrust in High Technology" for the Independent Institute, published in May, 1999.
His research has been the focus of articles in publications such as the New York Times, Wall Street Journal, Los Angeles Times, and the Economist.

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