Competitive Behavior-Based Price Discrimination for Software Upgrades

Published Online:https://doi.org/10.1287/isre.1100.0291

References

  • Acquisti A., Varian H. Conditioning prices on purchase history. Marketing Sci. (2005) 24(3):367–381LinkGoogle Scholar
  • Arora N., Dreze X., Ghose A., Hess J. D., Iyengar R., Jing B., Joshi Y., et al. Putting one-to-one marketing to work: Personalization, customization, and choice. Marketing Lett. (2008) 19(3–4):305–321CrossrefGoogle Scholar
  • Bala R., Carr S. Pricing software upgrades: The role of product improvement and user costs. Production Oper. Management (2009) 18(5):560–580CrossrefGoogle Scholar
  • Beggs A., Klemperer P. Multi-period competition with switching costs. Econometrics (1992) 60(3):651–666CrossrefGoogle Scholar
  • Brehm J. W. Post decision changes in the desirability of alternatives. J. Abnormal Soc. Psych. (1956) 52(3):384–389CrossrefGoogle Scholar
  • Cabral L., Villas-Boas M. Bertrand supertraps. Management Sci. (2005) 51(4):599–613LinkGoogle Scholar
  • Chen Y., Narasimhan C., Zhang Z. J. Individual marketing with imperfect targetability. Marketing Sci. (2001) 20(1):23–41LinkGoogle Scholar
  • Choi J. P. Network externality, compatibility choice, and planned obsolescence. J. Indust. Econom. (1994) 42(2):167–182CrossrefGoogle Scholar
  • Choudhary V., Ghose A., Mukhopadhyay T., Rajan U. Personalized pricing and quality differentiation. Management Sci. (2005) 51(7):1120–1130LinkGoogle Scholar
  • Demirhan D., Jacon V., Raghunathan S. Strategic IT investments: The impact of switching cost and declining IT cost. Management Sci. (2007) 53(2):208–226LinkGoogle Scholar
  • Dhebar A. Durable-goods monopolists, rational consumers, and improving products. Marketing Sci. (1994) 13(1):100–120LinkGoogle Scholar
  • Ellison G., Fudenberg D. The neo-luddite's lament: Excessive upgrades in the software industry. RAND J. Econom. (2000) 31(2):253–272CrossrefGoogle Scholar
  • Erat S., Kavadias S. Introduction of new technologies to competing industrial customers. Management Sci. (2006) 52(11):1675–1688LinkGoogle Scholar
  • Essegaier S., Gupta S., Zhang Z. J. Pricing access services. Marketing Sci. (2002) 21(2):139–159LinkGoogle Scholar
  • Farrell J., Shapiro C. Dynamic competition with switching costs. RAND J. Econom. (1988) 19(1):123–137CrossrefGoogle Scholar
  • Fudenberg D., Tirole J. Upgrades, trade-ins and buybacks. RAND J. Econom. (1998) 29(2):235–258CrossrefGoogle Scholar
  • Fudenberg D., Tirole J. Consumer poaching and brand switching. RAND J. Econom. (2000) 31(4):634–657CrossrefGoogle Scholar
  • Fudenberg D., Villas-Boas M., Hendershott T. Behavior-based price discrimination and customer recognition. Economics and Information Systems (2006) (Elsevier, Amsterdam) 377–436CrossrefGoogle Scholar
  • Gans N. Customer loyalty and supplier quality competition. Management Sci. (2002) 48(2):207–221LinkGoogle Scholar
  • Ghose A., Sundararajan A. Software versioning and quality degradation? An exploratory study of the evidence. (2005) . Working paper, Stern School of Business, New York University, New YorkCrossrefGoogle Scholar
  • Ghose A., Mukhopadhyay T., Rajan U. The impact of Internet referral services on a supply chain. Inform. Systems Res. (2007) 18(3):300–319LinkGoogle Scholar
  • Hart O., Tirole J. Contract renegotiation and Coasian dynamics. Rev. Econom. Stud. (1988) 55(4):509–540CrossrefGoogle Scholar
  • Kamrad B., Siddique A. Supply contracts, profit sharing, switching, and reaction options. Management Sci. (2004) 50(1):64–82LinkGoogle Scholar
  • Kennan J. Repeated bargaining with persistent private information. Rev. Econom. Stud. (2001) 68(4):719–755CrossrefGoogle Scholar
  • Kim J. The intensity of competition in the Hotelling model: A new generalization and applications. (2007) . MPRA Working paper,Google Scholar
  • Klemperer P. Entry deterrence in markets with consumer switching costs. Econom. J. (1987a) 97(Suppl.):99–117Google Scholar
  • Klemperer P. Markets with consumer switching costs. Quart. J. Econom. (1987b) 102(2):375–394CrossrefGoogle Scholar
  • Klemperer P. Price wars caused by switching costs. Rev. Econom. Stud. (1989) 56(3):405–420CrossrefGoogle Scholar
  • Klemperer P. Competition when consumers have switching costs: An overview with applications to industrial organization, macroeconomics and trade international. Rev. Econom. Stud. (1995) 62(4):515–539CrossrefGoogle Scholar
  • Lariviere M. A note on probability distributions with increasing generalized failure rates. Oper. Res. (2006) 54(3):602–604LinkGoogle Scholar
  • Levinthal D., Purohit D. Durable goods and product obsolescence. Marketing Sci. (1989) 8(1):35–56LinkGoogle Scholar
  • Lu Q., Moorthy S. Coupons versus rebates. Marketing Sci. (2007) 26(1):67–82LinkGoogle Scholar
  • Marinoso B. G. Technological incompatibility, endogenous switching costs and lock-in. J. Indust. Econom. (2001) 49(3):281–298CrossrefGoogle Scholar
  • Moorthy S., Png I. Market segmentation, cannibalization, and the timing of product introductions. Management Sci. (1992) 38(3):345–359LinkGoogle Scholar
  • Nahm J. Durable goods monopoly with endogenous innovation. J. Econom. Management Strategy (2004) 13(2):303–320CrossrefGoogle Scholar
  • Narasimhan C. A price discrimination theory of coupons. Marketing Sci. (1984) 3(2):128–147LinkGoogle Scholar
  • Padmanabhan V., Rajiv S., Srinivasan K. New products, upgrades and new releases: A rationale for sequential product introduction. J. Marketing Res. (1997) 34(4):456–572CrossrefGoogle Scholar
  • Pazgal A., Soberman D. Behavior-based discrimination: Is it a winning play, and if so, when? Marketing Sci. (2008) 27(6):977–994LinkGoogle Scholar
  • Raghunathan S. Software editions: An application of segmentation theory to the packaged software market. J. Management Inform. Systems (2000) 17(1):87–113CrossrefGoogle Scholar
  • Sankaranarayanan R. Innovation and the durable goods monopolist: The optimality of frequent new-version releases. Marketing Sci. (2007) 26(6):774–791LinkGoogle Scholar
  • Shi M., Chiang J., Rhee B. Price competition with reduced consumer switching costs: The case of “wireless number portability” in the cellular phone industry. Management Sci. (2006) 52(1):27–38LinkGoogle Scholar
  • Shin J., Sudhir K. A customer management dilemma: When is it profitable to reward one's own customers? Marketing Sci. (2007) 29(4):671–689LinkGoogle Scholar
  • Stylus Studio (2008) . Accessed May 2008, https://www.stylusstudio.com/buy/upgrade.htmlGoogle Scholar
  • Sundararajan A. Managing digital piracy: Pricing and protection. Inform. Systems Res. (2004) 15(3):287–308LinkGoogle Scholar
  • Terwiesch C., Savin S., Hann I.-H. Markets with consumer switching costs. Management Sci. (2005) 51(3):339–351LinkGoogle Scholar
  • Van Ackere A., Reyniers D. J. Trade-ins and introductory offers in an monopoly. RAND J. Econom. (1995) 26(1):58–74CrossrefGoogle Scholar
  • Villas-Boas M. Price cycles in markets with customer recognition. RAND J. Econom. (2004) 35(3):486–501CrossrefGoogle Scholar
  • Viswanathan S. Competing across technology-differentiated channels: The impact of network externalities and switching costs. Management Sci. (2005) 51(3):484–496LinkGoogle Scholar
  • Waldman M. A new perspective on planned obsolescence. Quart. J. Econom. (1993) 108(1):273–283CrossrefGoogle Scholar
  • Waldman M. Obsolescence and the R&D decision. RAND J. Econom. (1996) 27(3):583–595CrossrefGoogle Scholar
  • Zhang J. The perils of behavior-based personalization. (2010) . SSRN working paper, http://papers.ssrn.com/sol3/papers.cfm?abstract_id=943353Google Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.