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Limited Functionality Software: A monopolist has a high quality software program of quality (1;; : 1 which it can produce at 0 cost. They can

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Limited Functionality Software: A monopolist has a high quality software program of quality (1;; : 1 which it can produce at 0 cost. They can also produce any quality (3;; g 1 at 0 cost, but it is not possible for them to create a quality higher than 1. There are two types of consumers in the market, those with high valuations and those with low valuations. The fraction of consumers with high valuations is a

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