Subscription price and advertising space decisions for online content firms with reference effect

作者：

Highlights：

• A joint subscription price and advertising space allocation model with the reference effect is considered.

• When the viewer’s sensitivity to advertising is relatively small, the provider should adopt a subscription-support model rather than a hybrid business model.

• The provider should reduce the advertising space when viewers pay more attention to the viewer experience.

• The provider will overestimate (underestimate) the profit if he overlooks the negative (positive) reference effect.

摘要

•A joint subscription price and advertising space allocation model with the reference effect is considered.•When the viewer’s sensitivity to advertising is relatively small, the provider should adopt a subscription-support model rather than a hybrid business model.•The provider should reduce the advertising space when viewers pay more attention to the viewer experience.•The provider will overestimate (underestimate) the profit if he overlooks the negative (positive) reference effect.

论文关键词：Dynamic pricing,Advertising,Reference price,Digital good,Viewer experience

论文评审过程：Received 2 August 2017, Revised 16 May 2018, Accepted 16 May 2018, Available online 19 May 2018, Version of Record 24 May 2018.

论文官网地址：https://doi.org/10.1016/j.elerap.2018.05.007