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Simple pricing schemes for consumers with evolving values

Author

Listed:
  • Chawla, Shuchi
  • Devanur, Nikhil R.
  • Karlin, Anna R.
  • Sivan, Balasubramanian

Abstract

We consider a pricing problem where a buyer is interested in purchasing/using a good, such as an app or music or software, repeatedly over time. The consumer discovers his value for the good only as he uses it, and the value evolves with each use.

Suggested Citation

  • Chawla, Shuchi & Devanur, Nikhil R. & Karlin, Anna R. & Sivan, Balasubramanian, 2022. "Simple pricing schemes for consumers with evolving values," Games and Economic Behavior, Elsevier, vol. 134(C), pages 344-360.
    • Handle: RePEc:eee:gamebe:v:134:y:2022:i:c:p:344-360
    DOI: 10.1016/j.geb.2022.03.012
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    More about this item

    Keywords

    Evolving values; Pay-per-play; Free trial; Buy-it-now; Risk-robust revenue; Martingale;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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