The contributors consider such topics as the innovation value of software; empirical evidence and theoretical analysis regarding the impact of file sharing on music sales; the ability of firms to modify their products and offer them in different versions; the practice of preannouncing information goods; the effects of electronic commerce on both consumers and retailers; and price-setting by electronic mediators. The studies in "Industrial Organization and the Digital Economy" provide a valuable starting point for future research on other aspects of the subject, including the open-source movement and trust and reputation.