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Software as a Service (SaaS) is a rapidly growing model of software licensing. In contrast to traditional software where users buy a perpetual-use license, SaaS users buy a subscription from the publisher. Whereas traditional software publishers typically release new product features as part of new versions of software once in a few years, publishers using(More)
W e develop an analytical framework to investigate the competitive implications of personalized pricing (PP), whereby firms charge different prices to different consumers based on their willingness to pay. We embed PP in a model of vertical product differentiation and show how it affects firms' choices over quality. We show that firms' optimal pricing(More)
The widespread use of the Internet has led to the emergence of numerous information intermediaries that bring buyers and sellers together and leverage their knowledge of the marketplace to provide value added services. Infomediaries offer matching services that facilitate establishment of a buyer-seller agreement, and value-added services that either(More)
This paper studies second degree price discrimination for information goods. Prior research in the context of traditional goods (where marginal costs are convex as a function of product quality) shows that a firm can increase profits by offering vertically differentiated products to heterogeneous consumers. Some researchers have obtained the converse result(More)