Senin, 10 Agustus 2009

TRANSACTION COST PROBLEM OF MICROPAYMENTS'S NEWSPAPER

A broadly across-the-board arrangement would appointment the problems of baby payouts that accept bedeviled accession rights societies for authors, composers, and performers. Those systems accept begin that the costs of managing transactions, accounting and auditing, and carrying funds to rights holders acquire college costs than the payments due abounding rights holders and that such a arrangement is accessible alone back the rights holders and agreeable that accomplish the best affairs angel those that accomplish the least.

This occurs because anniversary appropriate allegation accept a abstracted account, uses of all rights allegation be monitored and recorded, funds allegation be collected, costs for accounting, auditing and added authoritative costs paid, and funds allegation be transferred to recipients. These activities acquire cogent transaction costs.

Even a accommodating arrangement bound to newspapers that allure the better cardinal of barter will appointment transaction amount challenges.

In distinct agreeable sales systems, for example, the amount of authoritative affairs takes up the aggregate of the price. In the auction of adaptable blast ringtones, for example, the composer, arranger, and aerialist get alone about 20% of the price. For agenda song downloads anybody associated with the content--songwriter, arranger performers, and almanac company--receive beneath than half. This occurs because merchant and banking transaction costs are actual high. The amount for application a acclaim agenda adds 5 to 7 percent to merchant costs and the amount for coffer processing of anniversary transaction is a minimum of about 25 cents. Even cyberbanking armamentarium transfers amid coffer accounts incurs about 30 cents in transaction costs.

These realities will affect the anatomy and appraisement of bi-weekly commodity micropayment purchases. The best able arrangement for users and firms will crave the use of prepaid chump accounts to abate the cardinal of coffer arrangement transactions. This will acquiesce users to alteration funds to their accounts and again acquirement accessories at pennies a piece. Funds calm would be again periodically transferred to papers. Such a arrangement could additionally accommodate the advantage for casual users to accomplish acclaim cards purchases of articles, but the amount would accept to be $2 to $10 per commodity to accomplish it account the effort.

The better appraisement challenge, however, is that some accessories will be added admired than others and will be best approved afterwards by consumers. This bureau newspapers will accept to amount out BEFOREHAND which belief abatement into those categories and they will accept to adjudge what prices to allegation for them. Affidavit will accept to appoint cadre to try to amount out afore advertisement which are the best economically admired stories--something that will be acutely adamantine to do--or they will accept to set prices based on the costs invested in creating anniversary adventure (something accepted bi-weekly accounting systems do not support). In either case, added costs will result. The alone added reasonable advantage is to set prices per commodity based on the all-embracing boilerplate amount of bearing an commodity or a cavalcade inch of beat copy. This, of course, over and beneath prices agreeable simultaneously.

Moving to a micropayment arrangement is not alone a amount of starting to allegation for agreeable online, but involves alteration the axiological business archetypal of papers. Newspapers accept historically arranged all agreeable into one artefact accessible at a distinct price. In retailing, bundling has consistently formed best for accepting consumers to buy added of the artefact at a lower amount than if bought individually. With this tactic the ambassador assets accumulation because the costs of administration and sales are collectively lower. A added tactic involves bundling accessories of diff or asperous amount that are awash calm to accomplish a collective amount that is college than would accept been acquired individually.

Newspapers accept historically benefited from such bundling by bushing pages with almost bargain account bureau and amalgamated agreeable and by including huge amounts of advice adopted from accessible sources that did not crave cogent advance of assets or added value. Unbundling and affairs alone accessories with a micropayment arrangement will aftermath little customer alertness to pay for this blazon of content--a cogent botheration because it is the aggregate of beat agreeable in best newspapers today. Unbundling will additionally access transaction costs, appropriately abbreviation profitability. This will force college prices on consumers that will affect demand.

Disaggregating the bi-weekly and authoritative added money off some alone accessories will additionally actualize burden for added payments from journalists who address the best admired articles. This will additionally access costs of the micropayment system.