This document presents a model on consumer behavior and demand for secured digital content. It discusses the need for a model to analyze the tradeoffs consumers face between purchasing versus copying digital music. The basic model assumes consumers maximize utility subject to a budget constraint when choosing to purchase or copy music. An extended model incorporates additional economic, risk, and technological factors that may influence consumer decisions. The model is then used to analyze the impact of digital rights management systems on consumer behavior and demand for digital content.

1. A Model on Consumer Behavior and the Demand for Secured Digital Content Rollins College, USA Prof. Dr. Marc Fetscherin March 2006

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15. The Author – mini CV Prof. Dr. Marc Fetscherin Department of International Business Rollins College, USA [email_address] Studied finance and marketing at the University of Lausanne (HEC) and holds a Masters degree in IT and Strategy from the London School of Economics (LSE) . He worked a s a consultant at McKinsey & Company where he got specialized in telecommunication and e-commerce. He was a PhD student at the University of Bern and was a visiting researcher at the University of California at Berkeley. He was a Fellow at Harvard University (Post-Doc) and is currently an Assistant Professor at Rollins College in the International Business Department and the Crummer Graduate School of Business, ranked 14 th best MBA in the USA according to Forbes Magazine. He his authors of multiples articles, book chapters, conference proceedings and presentations as well as is member of various expert groups in the field of digital content, piracy and Digital Rights Management.