Information/Costs/Shapiro/Varian: One of the most fundamental features of information goods is that their cost of production is dominated by the “first-copy costs.” Once the first copy of a book has been printed, the cost of printing another one is only a few dollars. The cost of stamping out an additional CD is less than a dollar, and the vast bulk of the cost of those $80 million movies is incurred prior to the production of the first print.
These costs remain constant with no natural capacity limits for additional copies.
Taken from: Information Rules
Shapiro, Carl. Information Rules: A Strategic Guide to the Network Economy Harvard Business Review Press. Kindle Edition._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. The note [Author1]Vs[Author2] or [Author]Vs[term] is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition.
Hal R. Varian
Information Rules: A Strategic Guide to the Network Economy Cambridge, MA 1998