In our model, market consists of two types of consumers who receive some common utility from the basic functionality of the information good but have heterogeneous valuation for other value enhancing functionalities. We show that in absence of piracy, versioning is optimal when the proportion of...

With the advent of Groupon.com in 2008, daily deal platforms have seen phenomenal growth. Surprisingly there is very sparse analytical research that has studied the economics of the daily deal platforms which are two-sided in the sense that they connect merchants on the one side to consumers on...

A third-party-online-promotion marketplace allows merchants to reach out to consumers who are uninformed about merchants' offering, and charges commission from them. We consider a market that has two types of merchants who are heterogeneous in the proportion of consumers who are informed about...

Online personalization services belong to a class of economic goods with a "no free disposal" (NFD) property where consumers do not always prefer more services to less because of the privacy concerns. These concerns arise from the revelation of information necessary for the provision of...