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Optimal dynamic pricing for subscription-based information goods under certain environment

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3 Author(s)
Ziping Wang ; Sch. of Bus., Univ. of Bridgeport, Bridgeport, CT, USA ; Dong-Qing Yao ; Mukhopadhyay, S.

Considering information goods' short life cycle and negligible marginal cost, it is an intractable task to formulate an appropriate pricing strategy for them. The company who launches the information product needs to dynamically price it in each period to achieve the maximum revenue. In this paper, we explore the optimal dynamic pricing strategy for subscription-based information goods with deterministic period demand. The effect of demand structure and the renewal rate on the global revenue are examined. Managerial insights are also presented with numerical illustrations.

Published in:

Service Operations and Logistics and Informatics (SOLI), 2010 IEEE International Conference on

Date of Conference:

15-17 July 2010