This paper analyzes optimal pricing for information goods under incomplete information,when both unlimited-usage (fixed-fee) pricing and usage-based pricing are feasible. For ageneral set of customer characteristics, it is shown that in the presence of contract administrationcosts, offering...

We present a model of dynamic monopoly pricing for a good that displaysnetwork effects. In contrast with the standard notion of arational-expectations equilibrium, we model consumers as boundedlyrational, and unable either to pay immediate attention to each pricechange, or to make accurate...

A number of technology products display positive network effects, and are used invariable quantities by heterogeneous customers. Examples include operating systems, infrastructureand back-end software, web services and networking equipment. This paper studies optimalnonlinear pricing for such...

Nonlinear usage-based pricing is applied extensively to price software products. Different from other products, software customers often cannot vary their required usage volume, a property we label local demand inelasticity. For instance, a client firm that needs a salesforce automation software...

In this paper we analyze a model of usage pricing for digital products with discontinuous supply functions, which characterizes a number of information technology-based products and services for which variable increases in demand are fulfilled by the addition of "blocks" of computing or network...

This paper analyzes optimal pricing for information goods under incomplete information, when both unlimited-usage (fixed-fee) pricing and usage-based pricing are feasible, and administering usage-based pricing may involve transaction costs. It is shown that offering fixed-fee pricing in addition...