This research explores the economic rationale behind the increasing use of software rentals in the software industry in North America. The first part uses a two period game theoretic model to analyze a monopoly's pricing strategy. The monopoly produces two versions of the software, one in each...

We develop an analytical framework to investigate the competitiveimplications of personalized pricing (PP), whereby firms chargedifferent prices to different consumers based on their willingness topay. We embed PP in a model of vertical product differentiation and showhow it affects firms’...