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COMPARATIVE ANALYSIS OF PRICING POLICIES IN THE MARKET FOR NETWORK GOODS

Abstract

Research goal: To develop a mathematical apparatus for evaluation of the different pricing policies of the monopolist company in the market for network goods. Methodology: Combination of the neoclassical theory methodologies, investment analysis, and mathematical modeling. Results: The economic-mathematical model of dynamic pricing in the market for network goods is developed in terms of the supplier monopoly. A comparative evaluation of different pricing policies is carried out based on computer experiment. Conclusions and significance: Two important quality indicators of the investment project on the development, production and after-sales service of network goods, namely, net present value of the project (NPV) and discounted payback period (DPB), show different behavior in time. Maximization of NPV is achieved by using subscription fees as the main source of income, while the challenge of reducing DPB tips the choice in favor of a combination of acquisition cost and maintenance fee. The rationale of scientific novelty. The novelty of the approach lies in (1) consideration in the analysis of the three cost types: investment costs, including sunk costs; current costs for production and sales; and the costs of maintaining the value; (2) the transition from the concept of the “value of the good” (expressed in ruble/unit) to the concept of the “use value of the good” (expressed in ruble/unit/period); (3) taking into account the peculiarities of increasing number of consumers of a good over time (logistic curve); (4) taking into account the number of potential consumers as a factor determining the value of a good; (5) use of the discounted payback period as a supplementary project quality indicator.

SERGEY G EVSUKOV, ALEKSANDR V SIGAREV, ELENA V USTYUZHANINA, ELENA V ZAYTSEVA

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