Decision Support Systems - Special issue: Economics and information systems
Analysis of pricing strategies for e-business companies providing information goods and services
Computers and Industrial Engineering - Special issue: Computational intelligence and information technology applications to industrial engineering selected papers from the 33 rd ICC&IE
Economic Implications of Variable Technology Standards for Movie Piracy in a Global Context
Journal of Management Information Systems
The Market Structure for Internet Search Engines
Journal of Management Information Systems
Electronic Commerce and Organizational Innovation: Aspects and Opportunities
International Journal of Electronic Commerce
Journal of Management Information Systems
Delayed multiattribute product differentiation
Decision Support Systems
Collaborative pricing model for bundling information goods
Journal of Information Science
Comparison of Software Quality Under Perpetual Licensing and Software as a Service
Journal of Management Information Systems
Selling or Advertising: Strategies for Providing Digital Media Online
Journal of Management Information Systems
The Optimal Number of Versions: Why Does Goldilocks Pricing Work for Information Goods?
Journal of Management Information Systems
Decision Support Systems - Special issue: Economics and information systems
Use of Pricing Schemes for Differentiating Information Goods
Information Systems Research
Why give away something for nothing? Investigating virtual goods pricing and permission strategies
ACM Transactions on Management Information Systems (TMIS)
Information Goods vs. Industrial Goods: Cost Structure and Competition
Management Science
Perpetual Versus Subscription Licensing Under Quality Uncertainty and Network Externality Effects
Journal of Management Information Systems
The Disruptive Effect of Open Platforms on Markets for Wireless Services
Journal of Management Information Systems
Computers and Industrial Engineering
Revisiting the incentive to tolerate illegal distribution of software products
Decision Support Systems
Sell by bundle or unit?: Pure bundling versus mixed bundling of information goods
Decision Support Systems
Competitive implications of software open-sourcing
Decision Support Systems
Service design of consumer data intermediary for competitive individual targeting
Decision Support Systems
Effects of Piracy on Quality of Information Goods
Management Science
The Disruptive Effect of Open Platforms on Markets for Wireless Services
Journal of Management Information Systems
Co-opetition Between Differentiated Platforms in Two-Sided Markets
Journal of Management Information Systems
Vertical Differentiation and a Comparison of Online Advertising Models
Journal of Management Information Systems
Computers and Industrial Engineering
Experience information goods: "Version-to-upgrade"
Decision Support Systems
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Second-degree price discrimination, that is, vertical differentiation, is widely practiced by firms selling physical goods to consumers with heterogeneous valuations. This strategy leads to market segmentation and has been shown to be optimal by many researchers. On the other hand, researchers have also demonstrated, under certain restrictive conditions, that vertical differentiation may not be optimal for information goods. We analyze vertical differentiation for a monopolist, continuing the practice of modeling consumer valuation as a linear function of product quality and consumer type but generalizing assumptions about marginal costs and consumer distributions. We show that the firm's optimal product line depends on the benefit-to-cost ratio of qualities in the choice vector. We find that a vertical differentiation strategy is not optimal when the highest quality product has the best benefitto-cost ratio. Many information goods satisfy this property.