A Markov-Based Collaborative Pricing System for Information Goods Bundling

Abstract

Information goods pricing is an essential and emerging topic in the era of information economy. Myriad researchers have devoted considerable attention to developing and testing methods of information goods pricing. Nevertheless, in addition; there are still certain shortcomings as the challenges to be overcome. This study encompasses several unexplored concepts that have attracted research attention in other disciplines lately, such as collaborative prototyping, prospect theory, ERG theory, and maintenance from design, economic, psychological, and software engineering respectively. This study presents a collaborative pricing system for information goods bundles and investigates the impact of three advantages: (1) provides a Markov-based collaborative process that could generate several prototypes via trial and error in pricing process, (2) attempts the dual optimality of maximum consumer utility and maximum producer profit, and (3) offers an appropriate information goods service bundle by interacting with consumer by discovering the actual needs.