Optimal dynamic pricing for subscription-based information goods under certain environment

Considering information goods´ short life cycle and negligible marginal cost, it is an intractable task to formulate an appropriate pricing strategy for them. The company who launches the information product needs to dynamically price it in each period to achieve the maximum revenue. In this paper, we explore the optimal dynamic pricing strategy for subscription-based information goods with deterministic period demand. The effect of demand structure and the renewal rate on the global revenue are examined. Managerial insights are also presented with numerical illustrations.