Selling the Subscription List

From Selling to Subscription Model in the Enterprise Software Market: A Paradigm Shift?

The current study examines the driving forces behind enterprise software providers' adoption of the subscription-based pricing model. I identify and model two special features of enterprise software products: consumers’ uncertainty about their true valuations for the product prior to adoption and the high upfront implementation cost. I develop a dynamic model with an infinitely-living monopoly ...

Selling Information Selling Information *

We study a dynamic buyer-seller problem in which the good is information and there are no property rights. The potential buyer is reluctant to pay for information whose value to him is uncertain, but the seller cannot credibly convey its value to the buyer without disclosing the information itself. Information comes as divisible hard evidence. We show how and why the seller can appropriate a su...

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The Economics of Buyer Uncertainty: Advance Selling vs. Probabilistic Selling

Although Advance Selling and Probabilistic Selling differ in both motivation and implementation, we argue that they share a common characteristic—both offer consumers a choice involving buyer uncertainty. We develop a formal model to examine the general economics of purchase options that involve buyer uncertainty, explore the differences in buyer uncertainty created via these two strategies, an...

Selling to Strategic Customers: Opaque Selling Strategies

Over the past few years, firms in the travel and entertainment industries have begun using novel sales strategies for revenue management. In this chapter, we study a selling strategy called opaque selling, in which firms guarantee one of several fully specified products, but hide the identity of the product that the consumer will actually obtain until after the purchase is completed. Several fi...