1 / 5

Selling and Leasing Software with Network Externalities

Selling and Leasing Software with Network Externalities. Authors: Jennifer Zhang, and Abraham Seidmann Discussant: Mingdi Xin Doctoral Candidate Stern School of Business, NYU. Summary of the Paper. Without a network effect With Commitment

justine
Download Presentation

Selling and Leasing Software with Network Externalities

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Selling and Leasing Software with Network Externalities Authors: Jennifer Zhang, and Abraham Seidmann Discussant: Mingdi Xin Doctoral Candidate Stern School of Business, NYU

  2. Summary of the Paper Without a network effect • With Commitment • Pure selling, pure leasing and the hybrid pricing model are equivalent • Without commitment • Profitability: Leasing > Hybrid > Selling • Consumer surplus and social welfare: Selling > Hybrid > Leasing Mingdi Xin Stern School of Business

  3. Summary of the Paper With a network effect • With Commitment • Profitability: Selling = Hybrid> Leasing • Consumer surplus and social welfare: Selling = Hybrid > Leasing • Without commitment • When network externality is significant, the hybrid pricing model can be more profitable than both leasing and selling. Mingdi Xin Stern School of Business

  4. Strength • Durable goods pricing + Network effects • Interesting results! • The hybrid pricing model is optimal when network effect is significant. • Implications for software pricing • Very well-written Mingdi Xin Stern School of Business

  5. Suggestions • Commitment to future leasing price • Pricing dynamics • Quality improvement of the future version • Complementary services sales • Subscription-based licensing versus Software-as-a-Service Mingdi Xin Stern School of Business

More Related