This work deals with pricing of “virtual” products, i.e., products that a retailer can supply after demand has been realized. Such products allow the retailer to avoid holding costs and ensure timely fulfillment of demand with no risk of shortage. Demand is commonly price-dependent and...

We analyze pricing and protection (digital rights management) strategies in a two-echelon supply chain that consists of a manufacturer and a retailer of digital products. The demand for the legal (non-pirated) product, which depends on both price and monetary investment in protection, is assumed...