Optimal software free trial strategy with network effects in a platform supply chain

Software developers usually adopt free trial strategies to promote their products in the software industry. Limited-time, limited-function, and hybrid have been becoming prevalent free trial strategies in reducing consumers' uncertainty about software quality. How to choose the optimal free trial strategy is a core issue facing software developers. This paper discusses the optimal software free trial strategy, as well as optimal pricing, optimal free quality, and optimal free time length based on network effects in a platform supply chain. The results show that hybrid is always optimal and the intensity of network effects plays a key role between limited-time and limited-function. Limited-time is superior to limited-function for a medium intensity of network effects, whereas limited-time is inefficient and limited-function is optimal for a weak/strong intensity of network effects.