Providers of free-to-play games often gain revenue by monetizing players' playtime, e.g., through ingame advertising, and by selling premium module of the game. One emerging strategy to sell the premium module, known as the virtual selling strategy, is to set the module price based on an amount...

In this paper, we develop a game theoretic model to study the pricing of e-books and e-readers under two pricing models: the wholesale and the agency models. We analyze pricing strategies for a publisher and a retailer. We identify the complementary relationship between e-books and e-reader as...