The introduction of product upgrades in a competitive environment is commonly observed in the software industry. When introducing a new product, a software vendor may employ behavior-based price discrimination (BBPD) by offering a discount over its market price to entice existing customers of...

In this paper, we model competition between two software product vendors, an incumbent and entrant, with specific focus on the role of switching costs. Contrary to conventional wisdom, we find that under certain conditions the switching costs imposed by the incumbent's product could actually...

This paper develops and analyzes a model of competition between platforms in an industry with indirect network effects, with a specific focus on complementary product exclusivity. The objective is to understand the conditions under which complement exclusivity can be observed and analyze the...

When an improvable durable good (such as packaged software) saturates the market, the seller could be tempted to release new versions too frequently, hurting her profit. A novel contractual device, which we term as a Free New Version Rights warranty (Free NVR warranty), can help the seller...

In this paper we study a monopolist technology vendor's decision to degrade their installed base when they release their newer version. An installed base of products that are technologically tethered, whether digital products such as smartphones or predominantly non-digital products such as...

The paper develops a modeling framework to study how sustainability interventions impact consumer adoption of durable goods innovation, firm profit and environmental outcomes in equilibrium. Our two period model with forward looking consumers and a monopoly firm introducing an innovation in...

We analyze how di erent dimensions of a seller's reputation a ectpricing power in electronic markets. We do so by using text miningtechniques to identify and structure dimensions of importance fromfeedback posted on reputation systems, by aggregating and scoring thesedimensions based on the...

As Internet-based commerce becomes increasingly widespread, large datasets about the demand for and pricing of a wide variety of productsbecome available. These present exciting new opportunities for empiricaleconomic and business research, but also raise new statistical issuesand challenges. In...

This paper analyzes the optimal choice of pricing schedules andtechnological deterrence levels in a market with digital piracy wheresellers can influence the degree of piracy by implementing digitalrights management (DRM) systems. It is shown that a monopolist’soptimal pricing schedule can be...