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This paper analyzes optimal pricing for information goods under incomplete information,when both unlimited-usage (fixed-fee) pricing and usage-based pricing are feasible. For ageneral set of customer characteristics, it is shown that in the presence of contract administrationcosts, offering...
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We present a model of dynamic monopoly pricing for a good that displaysnetwork effects. In contrast with the standard notion of arational-expectations equilibrium, we model consumers as boundedlyrational, and unable either to pay immediate attention to each pricechange, or to make accurate...
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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...
Persistent link: https://www.econbiz.de/10012766085
A number of products that display positive network effects are used in variable quantities by heterogeneous customers. Examples include corporate operating systems, infrastructure software, web services and networking equipment. In many of these contexts, the magnitude of network effects are...
Persistent link: https://www.econbiz.de/10012769258
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...
Persistent link: https://www.econbiz.de/10012769260
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