In this paper, we model competition between two software product vendors, an incumbent and entrant, with specific focus … the first period, the incumbent offers an initial version of the software product. In the second period, both incumbent … and entrant offer improved versions of the software, with upgrade discounts to customers who have already purchased the …

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 …

With the emergence of high speed networks, software firms have the ability to deploy 'software as a service' and …