consumer electronics, and club memberships. We demonstrate that consumption is affected by contract structure (pay-peruse vs …. We also measure subjects' willingness to pay for a contract with free access units, and we find that nearly half of … strategy is therefore to offer a contract that presells access units at a very small discount; this strategy increases revenue …

quantity. We provide analytical models and use a laboratory experiment to analyze ordering behavior under service level … quantities with low variability, resulting in high efficiency. In our experiment, the efficiency that human subjects achieved … under a service level contract was 97.2%, compared with an efficiency of 88.1% under a wholesale price contract …