Network externalities, reference prices effects and the dynamic pricing model of digital product

With the development of internet, the digital products(services) market, which is closely related to the internet, is also developing rapidly, and pricing for digital product has become a notable economic problem. In this paper, considering the impact of network externalities and the reference price effect on consumer demand, we established a demand function based on our analysis of the digital product(service) market and set up an producer profit maximization model, then we obtain a dynamic pricing model for digital products(services) producer.