TY - GEN
T1 - The services pricing strategy on Software As A Service
AU - Xiong, Huanhuan
AU - Wang, Peigang
AU - Zhu, Guobin
PY - 2010
Y1 - 2010
N2 - The pricing of "pay-per-use", which is usually viewed as the application of Differential Pricing in Software As A Service (SAAS) become more popular in IT society. Differential Pricing has greatly promoted the development of software industry, but it could not reflect the substantive relationship in terms of the services price, cost and quality. In this paper, we apply bargaining theories, static games of complete information and dynamic games of complete information to analyze the pricing behavior of the oligarchic software enterprises. We use the value of services quality to measure the longitudinal differentiation degree, and study the pricing strategy based on the fluctuant market of homogeneous or heterogeneous consumers with static games. Finally we discuss the dynamic games between the enterprise with cost advantages and with cost disadvantages, and get the subgame perfect Nash equilibrium. The conclusion indicates that the pricing strategy could normalize the price mechanism of SAAS and promote the development of SAAS fairly and effectively.
AB - The pricing of "pay-per-use", which is usually viewed as the application of Differential Pricing in Software As A Service (SAAS) become more popular in IT society. Differential Pricing has greatly promoted the development of software industry, but it could not reflect the substantive relationship in terms of the services price, cost and quality. In this paper, we apply bargaining theories, static games of complete information and dynamic games of complete information to analyze the pricing behavior of the oligarchic software enterprises. We use the value of services quality to measure the longitudinal differentiation degree, and study the pricing strategy based on the fluctuant market of homogeneous or heterogeneous consumers with static games. Finally we discuss the dynamic games between the enterprise with cost advantages and with cost disadvantages, and get the subgame perfect Nash equilibrium. The conclusion indicates that the pricing strategy could normalize the price mechanism of SAAS and promote the development of SAAS fairly and effectively.
KW - Bargaining
KW - Differential pricing
KW - Dynamic games
KW - Software as a service
KW - Static game
UR - https://www.scopus.com/pages/publications/78649441918
U2 - 10.1109/ICMSS.2010.5576650
DO - 10.1109/ICMSS.2010.5576650
M3 - Conference proceeding
AN - SCOPUS:78649441918
SN - 9781424453269
T3 - 2010 International Conference on Management and Service Science, MASS 2010
BT - 2010 International Conference on Management and Service Science, MASS 2010
T2 - 2010 International Conference on Management and Service Science, MASS 2010
Y2 - 24 August 2010 through 26 August 2010
ER -