Research Note— Analyzing Pricing Strategies for Online Services with Network Effects

Material TypeArticleLanguageEnglish
TitleResearch Note— Analyzing Pricing Strategies for Online Services with Network Effects Author(S)Min-Seok Pang (Author)
Abstract  In this study, we model firms that sell a product and a complementary online service, where only the latter displays positive network effects. That is, the value each consumer derives from the service increases with the total number of consumers that subscribe to the service. In addition, the service is valuable only to consumers who buy the product. We consider two pricing strategies: (1) bundle pricing, in which the firm charges a single price for the product and the service ...Paginationp1364 - 1377
SubjectManagementDescriptorsInformation technology Computers
Journal TitleInformation Systems Research  
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