Working Paper: NBER ID: w9966
Authors: Jaison R. Abel; Ernst R. Berndt; Alan G. White
Abstract: Using a unique and comprehensive data source, we measure price changes for Microsoft's desktop personal computer software products during the time period July 1993 through June 2001. This paper contributes to a relatively small literature on price measurement of pre-packaged software by incorporating important channels of distribution, such as volume licensing and Original Equipment Manufacturer, as well as changes in product form, such as upgrades and integrated productivity suites, into matched-model price indexes. Although there are differences over time periods and across products, we find that the prices of Microsoft's desktop operating systems and applications have generally been falling over this time period.
Keywords: No keywords provided
JEL Codes: D4; E3; L86
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| distribution channel changes (L81) | price index calculations (C43) |
| shift from retail/mail order sales to volume licensing agreements and OEM sales (L81) | pricing structure of Microsoft’s products (D49) |
| increase in the proportion of applications sold under volume licensing (D45) | decrease in average prices reported (E30) |
| prices for Microsoft’s desktop operating systems and applications (P22) | generally falling prices from July 1993 through June 2001 (E31) |