Subject: pricing, price discrimination, information goods, digital goods, adverse selection, screening, principal agent, incentives, mechanical design, incentive compatible, monopoly, incomplete information, second-degree price discrimination, two-part tariff, vertical differentiation, software, Internet | nonlinear pricing, screening, digital goods, information goods, fixed-fee, usage-based pricing, transaction costs
jel: jel:D42 | jel:D82 | jel:L12
This paper analyzes optimal pricing for information goods under incomplete information, when both unlimited-usage (fixed-fee) pricing and usage-based pricing are feasible, and administering usage-based pricing may involve transaction costs. It is shown that offering fix... View more
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