Valuation of digital services in Iran: Empirical proof for Google and Instagram
Subject Areas : ICTFARHAD ASGHARI ESTIAR 1 , AMIR MOHAMMADZADEH 2 , Ebrahim Abbasi 3
1 -
2 - PROFESSOR
3 - Department of management, faculty of social sciences and economics, Alzahra University, Tehran, Iran
Keywords: digital platform, free goods, valuation, covid-19, intangible assets,
Abstract :
This article surveys the fundamental value of digital platforms, such as Instagram and Google. Despite the commutable nature of digital technologies, it is challenging to value digital services, given that the usage is free of charge. Applying the methodology of discrete choice experiments, we estimated the value of digital free goods. For the first time in the literature, we obtained data for the willingness-to-pay and willingness-to-accept, together with socio-economic variables. The customer’s valuation of free digital services is on average, for Google, 4.9m Rial per week and Instagram, 3.27. This paper corroborates that Instagram and Google have an intrinsic value to users, despite the fact that the service of the digital platforms is free of charge. This is the beginning of the valuation of free services such as Shad, Rubika, Zarebeen, etc. in Iran, which has played a significant role in the communication industry since the beginning of the Covid-19 pandemic, and in the discussion of the national information network, the market value of the provider companies will be very important.
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