• ISSN: 2010-023X (Print)
    • Abbreviated Title: Int. J. Trade, Economics and Financ.
    • Frequency: Bimonthly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Executive Editor: Ms. Cherry L. Chen
    • Abstracting/ Indexing:  ProQuest, Crossref, Electronic Journals Library , EBSCO, and Ulrich's Periodicals Directory
    • E-mail: ijtef@ejournal.net
IJTEF 2019 Vol.10(3): 56-61 ISSN: 2010-023X
DOI: 10.18178/ijtef.2019.10.3.638

Optimal Allocation of Online Content Combination Pricing under Mixed Revenue Mode

Yue Yao, Yan Cheng, and Yingying Xie
Abstract—The development of Internet makes the rapid expansion of the business model based on providing online content service to online users. In recent years, the promotion of the payment model has brought new profit increasing point for content service providers. Single-on-demand payment and bundling subscription payment are widely used payment methods. If the two modes are combined, the service providers will often get more benefits. So in the mixed revenue model, online content service providers need to decide how to set a reasonable price for each charge mode in order to maximize expected revenue. In this paper, the user’s value estimation model is constructed based on time preference theory and loss aversion theory. Furthermore, the variable neighborhood search algorithm is used to simulate and verify the optimal pricing strategy of various charging model combinations.

Index Terms—Online content, loss aversion, time preference, mixed revenue.

The authors are with the School of Business, East China University of Science and Technology, China (e-mail: yy926y@163.com, yancheng@ecust.edu.cn, 1159268928@qq.com).

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Cite: Yue Yao, Yan Cheng, and Yingying Xie, "Optimal Allocation of Online Content Combination Pricing under Mixed Revenue Mode," International Journal of Trade, Economics and Finance vol.10, no.3, pp. 56-61, 2019.

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