pricing services online, economics of

Anja Lambrecht

from Palgrave Macmillan

Abstract: Firms deliver a variety of services online, ranging from content, software and banking to entertainment and networking. This article examines a firm's pricing decision for online services. It first discusses how a firm's decision of pricing services online differs from offline pricing decisions. It then discusses how firms can price services online. It examines the firm's choice between ‘fee’ or ‘free’ revenue models. It then turns to a firm's decision on its pricing structure. This includes the decision whether to sell or to rent, and the choice between pricing plans (e.g. pay-per-use, flat-rate tariffs or more complicated multi-part tariffs) or bundling. Lastly, it turns to the role of pricing in new product adoption.

Keywords: bucket pricing; flat-rate tariff; freemium; online; pricing; three-part tariff (search for similar items in EconPapers)
JEL-codes: L81 L86 (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.dictionaryofeconomics.com/article?id=pde2013_P000380 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:dofeco:v:7:year:2013:doi:3898

Ordering information: This item can be ordered from
http://www.dictionar ... lp/faq#_Toc198623697

Access Statistics for this chapter

More chapters in The New Palgrave Dictionary of Economics from Palgrave Macmillan
Bibliographic data for series maintained by Sheeja Sanoj ( this e-mail address is bad, please contact ).