Optimal Length of Free Trial for Online Service Considering User's Learning Effect

Free trial strategy, which allows a user to use service/product freely for a limited time, is widely applied in online service. With time-based pricing, we first consider that the service provider launches its initial version and offers a fixed length of free trial. We observe that the optimal length of free trial cannot be more than 1/3 of the initial version's lifespan. Then, we analyze the two-stage setting where a strategic or myopic service...