Abstract
This paper analyzes the possibility of a monopoly firm selling and renting a packaged software product. It employs a simple model to analyze the firm's pricing strategy. We observe that the introduction of the rental product leads to an increase in profits, an increase in selling and a decrease in rental prices as a function of the rate of change of the rental price with respect to the quantity sold.
Recommended Citation
Chaturvedi, Alok; Choudhary, Vidyanand; and Tomak, Kerem, "An Economic Model for Microrenting in Electronic Commerce" (1997). AMCIS 1997 Proceedings. 44.
https://aisel.aisnet.org/amcis1997/44
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