PEAK: Pricing Electronic Access to Knowledge

Prof. Jeffrey K. MacKie-Mason

University of Michigan

PEAK: Pricing Electronic Access to Knowledge

Outline

Program for Research on the Information Economy

PRIE

PEAK: The opportunity

Publisher problems

The problem with high first-copy costs

Electronic publishing opportunities

New value added

Finding old value: Bundling

Finding old value: Price differentiation

Finding old value: Nonlinear pricing

Theory of nonlinear pricing

Nonlinear pricing (cont)

Alternative approach

How large is the product space? Bundling

How large is the pricing space? Endless variety

Pricing Models:Three part tariff

Implementation: Bundling and Pricing

Implementation: Generalized subscriptions

Implementation: Customer groups

Implementation: Subject domains

Implementation Constraints

Experimental design