%0 Journal Article
%T Market Structure Formation Mechanism of Bit Product
%A Dan Ye
%A Huaying Shu
%J Modern Economy
%P 245-251
%@ 2152-7261
%D 2012
%I Scientific Research Publishing
%R 10.4236/me.2012.32034
%X Bit products are those which are expressed in binary 0 and 1, they are distributed over data networks and stored in the form of bit stream. And the market structure of bit product differs from traditional physical products very much; there exist a widely popular phenomenon of ¡°winner takes all¡± and long-tail market. This paper discusses what strengths the monopoly tendency while compelling the market environment becomes more competitive and why the structure is unstable. It¡¯s the positive feedback of a synthetic function of economy of scale, network effect, lock-in effect and economy of scope that makes the market favor monopolization. At the same time, the short lifespan of bit product and differentiation guarantees the fierce competition. What¡¯s more, technological innovations bring changes to market structures and accelerate the dynamic evolution.
%K Bit Product
%K Digital Economy
%K Market Structure
%K Technological Innovation
%U http://www.scirp.org/journal/PaperInformation.aspx?PaperID=18158