The “freemium” model for digital goods involves selling a base version of the product for free, and making premium product features available to users only on payment. The success of the model is predicated on the ability to profitably convert free users to paying ones. Price promotions (or...

In this paper we characterize the feedback equilibrium of a general infinite-horizon Stackelberg-Nash differential game where the roles of the players are mixed. By mixed we mean that one player is a leader on some decisions and a follower on other decisions. We prove a verification theorem that...

A nearly explicit feedback Stackelberg-Nash equilibrium is obtained in a dynamic distribution channel consisting of a manufacturer and two competing asymmetric retailers engaged in promoting the manufacturer's product to be sold through the retailers. The manufacturer decides on its support for...