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Internet digital content pricing and subscribers control

Author

Listed:
  • Sobhi Mejjouali
  • Lotfi Tadj

Abstract

We use optimal control theory to determine the optimal rate of change in the subscription fee and the optimal ratio of ad space to the total web page space for a web content provider. An optimal solution is obtained using the maximum principle approach and the model predictive control approach. Numerical experiments show that it is preferable to use the first approach when the planning horizon is short and the second approach when the planning horizon is long.

Suggested Citation

  • Sobhi Mejjouali & Lotfi Tadj, 2023. "Internet digital content pricing and subscribers control," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 33(3), pages 59-73.
    • Handle: RePEc:wut:journl:v:33:y:2023:i:3:p:59-73:id:4
    DOI: 10.37190/ord230304
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    References listed on IDEAS

    as
    1. Vijay Victor & Jose Joy Thoppan & Robert Jeyakumar Nathan & Fekete Farkas Maria, 2018. "Factors Influencing Consumer Behavior and Prospective Purchase Decisions in a Dynamic Pricing Environment—An Exploratory Factor Analysis Approach," Social Sciences, MDPI, vol. 7(9), pages 1-14, September.
    2. Choi, Tsan-Ming & Guo, Shu & Liu, Na & Shi, Xiutian, 2020. "Optimal pricing in on-demand-service-platform-operations with hired agents and risk-sensitive customers in the blockchain era," European Journal of Operational Research, Elsevier, vol. 284(3), pages 1031-1042.
    3. Sun, Luoyi & Teunter, Ruud H. & Babai, M. Zied & Hua, Guowei, 2019. "Optimal pricing for ride-sourcing platforms," European Journal of Operational Research, Elsevier, vol. 278(3), pages 783-795.
    4. Kumar, Subodha & Sethi, Suresh P., 2009. "Dynamic pricing and advertising for web content providers," European Journal of Operational Research, Elsevier, vol. 197(3), pages 924-944, September.
    Full references (including those not matched with items on IDEAS)

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