As Internet-based commerce becomes increasingly widespread, large datasets about the demand for and pricing of a wide variety of productsbecome available. These present exciting new opportunities for empiricaleconomic and business research, but also raise new statistical issuesand challenges. In...

This paper analyzes the optimal choice of pricing schedules andtechnological deterrence levels in a market with digital piracy wheresellers can influence the degree of piracy by implementing digitalrights management (DRM) systems. It is shown that a monopolist’soptimal pricing schedule can be...

This paper analyzes optimal pricing for information goods underincomplete information, when both unlimited-usage (fixed-fee) pricingand usage-based pricing are feasible and administering usage-basedpricing may involve transaction costs. It is shown that offeringfixed-fee pricing in addition to a...

Electronic commerce has enabled the use of intelligent agenttechnologies that can evaluate buyers, customize products, and price inreal-time. Our model of an electronic market with customizable productsanalyzes the pricing, profitability and welfare implications ofagent-based technologies that...

We present a framework for measuring software quality using pricing anddemand data, and empirical estimates that quantify the extent of qualitydegradation associated with software ver- sioning. Using a 7-month,108-product panel of software sales from Amazon.com, we document theextent to which...

We develop and analyze a model of pricing for digital products withdiscontinuous supply functions. This characterizes a number ofinformation technology-based products and services for which variableincreases in demand are fulfilled by the addition of 'blocks' ofcomputing or network...

We develop and analyze a model of pricing for digital products with discontinuous supply functions. This 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...

A number of products that display positive network effects are used in variable quantities by heterogeneous customers. Examples include corporate operating systems, infrastructure software, web services and networking equipment. In many of these contexts, the magnitude of network effects are...