This paper analyzes optimal pricing for information goods under incomplete information, when both unlimited-usage (fixed-fee) pricing and usage-based pricing are feasible, and administering usage-based pricing may involve transaction costs. It is shown that offering fixed-fee pricing in addition...

We present a model of dynamic monopoly pricing for a good that displays network effects. In contrast with the standard notion of a rational-expectations equilibrium, we model consumers as boundedly rational, and unable either to pay immediate attention to each price change, or to make accurate...

This paper analyzes the optimal choice of pricing schedules and technological deterrence levels in a market with digital piracy where sellers can influence the degree of piracy by implementing digital rights management (DRM) systems. It is shown that a monopolist's optimal pricing schedule can...

A number of technology products display positive network effects, and are used in variable quantities by heterogeneous customers. Examples include operating systems, infrastructure and back-end software, web services and networking equipment. This paper studies optimal nonlinear pricing for such...

Nonlinear usage-based pricing is applied extensively to price software products. Different from other products, software customers often cannot vary their required usage volume, a property we label local demand inelasticity. For instance, a client firm that needs a salesforce automation software...

A number of technology products display positive network effects, and are used invariable quantities by heterogeneous customers. Examples include operating systems, infrastructureand back-end software, web services and networking equipment. This paper studies optimalnonlinear pricing for such...