Critics often decry an earnings-focused short-term orientation of management that eschews
spending on risky, long-term projects such as innovation to boost a firm's stock price. Such …

We analyze two pricing mechanisms for information goods. These mechanisms are selling,
where up-front payment allows unrestricted use, and pay-per-use, where payments are …

This paper focuses on a specific strategy that developers of mobile applications may use to
stimulate demand: The release of updates. We develop a theoretical analysis that shows …

We discuss the optimal way for a software vendor to license software: a perpetual license at
a posted price, a subscription contract that subscribers receive automatic updates for …

Science and technology advances drive firms to continually enhance their product's
performance and launch sequentially improving offerings. Firms face challenges in …

Durable goods account for a significant portion of the economy and have been of
considerable interest to academic researchers, especially economists, over the last four …

In this paper, we analyze the profitability of a selling and a leasing model by considering
both software upgrades and different price discrimination strategies in a two-period model …

The computer software industry is an extreme example of rapid new product introduction.
However, many consumers are sophisticated enough to anticipate the availability of …

Network effect is a phenomenon whereby the value of a product or service increases in the
number of users. Delayed network effect denotes that the increased value of a product on an …

A price benchmark shaped by consumers on the basis of their perception of past prices is
known as a reference price. Behavioral decision research suggests that consumers are …