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 …

We analyze and compare fixed-fee and usage-fee software pricing schemes - in fixed-fee pricing, all users pay the same … price; in usage-fee pricing, the users' fees depend on the amount that they use the software (e.g., the user of an online … assume that customers vary in the amount that they will use the software (usage heterogeneity) and also in their per …

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 …

The computer software industry is an extreme example of rapid new product introduction. However, many consumers are … either postpone purchase or buy early on and never upgrade. In response, many software producers offer special upgrade … drivers) is incurred by the user when she buys the new version but is not captured by the upgrade price for the software. Our …