Dynamic pricing model of digital knowledge commodity considering competition from congener commodity

The distinctive characteristics of digital knowledge commodity (DKC) make its pricing method different from traditional commoditypsilas. One hand, cost characteristic of DKC gives us more price choices. On the other hand, characteristics else of DKC bring us more difficulties to price. To solve this problem, the first-degree price discrimination is adopted, with respect to the stage in which the on-line sellerpsilas sale number does not exceed critical sale number. Then dynamic pricing model considering competition from congener commodity is built, in which commodity copyright cost, advertisement cost, competitorpsilas price, customerpsilas expectation of commodity and customer behavior are considered, for the sake of maximizing the sale and the profit of an on-line seller. In customer behavior model, the positive exterior influence of Web on customer purchase behavior is considered, and the influence of commodity brand, history sale number and price are quantized.