330 / 2024-04-24 15:04:52

Optimal Product Line Strategy for Content Products considering Consumers’ Fairness Concerns

content product; product line strategies; consumers’ fairness concern; product quality

The development of the digital age has made data and information more transparent, which gives content product developers the incentive to develop different versions of products to meet various consumer needs. This study investigates optimal product line strategies for content product developers considering consumer fairness issues to elucidate the impact of consumer fairness issues on developers' product strategies. This article assumes that monopoly content developers implement different product strategies for content products. By constructing a game model, this study investigates the optimal product line and pricing decisions made by content developers based on their consideration or neglect of consumer fairness issues. In an extended section, the authors also consider the impact of endogenous product quality on these optimal decisions. Our results show that consumers' level of concern about fairness significantly affects developers' optimal product line decisions. I also added some interesting points from the perspective of consumer surplus and social welfare.