Pricing Digital Products and Services in Electronic Commerce

Abstract

Given its increasing impact on the economy, e-commerce has attracted attentions of scholars from a broad range of disciplines. One of the questions that still remain is: “How to determine prices for digital products and services?” When some products that used to be sold in the regular market with a price tag, and now they are distributed free over the Internet, then, pricing these products becomes a challenging issue. We have proposed a “singing lottery ticket” pricing mechanism that might give the users the incentive to pay a small subscription fee to download the music. Keyword: Pricing, Electronic Commerce, Lottery