We analyze two pricing mechanisms for information goods selling, where an up-front payment allows unrestricted use by the consumer, and pay per-use pricing where the payments are tailored to the consumer's usage patterns. We analytically model these pricing mechanisms in a market where consumers...

Firms frequently compete across multiple segments. Such multimarket contact has been shown to deter aggressive competition, leading to what has been termed quot;mutual forbearance.quot; Empirical support for this phenomenon derives mainly from studies of the direct effects of multimarket contact...