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International Journal of Electrical and Computer Engineering (IJECE)
Article . 2017 . Peer-reviewed
License: CC BY NC
Data sources: Crossref
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Article . 2017
License: CC BY
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Utility Function-based Pricing Strategies in Maximizing the Information Service Provider’s Revenue with Marginal and Monitoring Costs

Authors: Robinson Sitepu; Fitri Maya Puspita; Anggi Nurul Pratiwi; Anggi Nurul Pratiwi;

Utility Function-based Pricing Strategies in Maximizing the Information Service Provider’s Revenue with Marginal and Monitoring Costs

Abstract

Previous research only focus on maximizing revenue for pricing strategies for information good with regardless the marginal and monitoring costs. This paper aims to focus on the addition of marginal and monitoring costs into the pricing strategies to maintain the maximal revenue while introduce the costs incurred in adopting the strategies. The well-known utility functions applied to also consider the consumer’s satisfaction towards the service offered. The results show that the addition costs incurred for setting up the strategies can also increase the profit for the providers rather than neglecting the costs. It is also showed that the Cobb-Douglas utility functions used can enhance the notion of provider to optimize the revenue compared to quasi linear and perfect substitutes.

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Keywords

Utility function, Pricing strategies, Revenue, Marginal cost, Monitoring cost

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
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