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 …

In this paper, we analyze the profitability of selling and leasing models by considering both software upgrades and … different price discrimination strategies. We construct a two-period model to study software upgrades, consumers' inter … strategies: inter-temporal, behavior-based, and a hybrid price discrimination strategy. Meanwhile, we only consider a software …

Many software products are available free of charge. While the benefits resulting from network externality have been … examined in the related literature, the effect of free offer on the diffusion of new software has not been formally analyzed …. We show in this study that even if other benefits do not exist, a software firm can still benefit from giving away fully …

leasing strategy for a special type of durable good - software. We look at a software vendor that can sell (at a posted price …) or lease his product where as a lesser he guarantees that the lessees will always have the latest version of the software …. We address some of the specific issues of implementing the selling and/or leasing policies at the packaged software …