An Economic Model for Microrenting in Electronic Commerce

  • Alok Chaturvedi Vidyanand Choudhary Kerem Tomak alok
  • Published 2000

Abstract

This paper analyzes the possibility of a monopoly firm selling and renting a packaged software product. It employs a simple model to analyze the firm's pricing strategy. We observe that the introduction of the rental product leads to an increase in profits, an increase in selling and a decrease in rental prices as a function of the rate of change of the… (More)

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