Faugere, Christophe; Tayi, Giri Kumar - EconWPA - 2003
We develop a vertical differentiation game-theoretic model that addresses the issue of designing free software samples … for attaining follow-on sales. When software samples are akin to durable goods, a Monopolist giving a free sample away is … likely to engender the cannibalization of sales of its commercial product. We analyze the optimal design of free software …