How to charge in servicizing: Per period or per use?

In a servicizing business model, the service provider sells product’s functionality, not product per se. This study aims to find best profit-maximizing pricing strategies for this model that can also yield highest consumer welfare with minimal environmental impact. approach identifies win-win-win satisfying profit, planet, and people objectives. As providers charge consumers based on usage (pay-per-use) versus regular flat fee (pay-per-period), economic, environmental, implications of such remain unclear. We tackle problem using stylized game-theoretic where first designs schemes, react by adjusting use. When offering single product, we observe pay-per-use policies outperform pay-per-period when is cost-inefficient or small-scale. Also, per-use are very sensitive payment frequency, tend exclude low usage-valuation users. Outperformance prevails proportion low-use sufficiently low. Our results show win-win strategy be achieved policy high consumers, however, never possible. analyze situation offers line including green products. Then, characterize possible hinge impact from different phases lifecycle. extend models allow SP i) influence size market segments ii) decide greenness levels in its