The present study proposes a theoretical model to discuss an optimal pricing strategy for the installbase business under monopoly. The installbase business considered here is such that a manufacturer deals in a system along with its replaceable parts as expendable supplies which are indispensable for the system to provide its services. The proposed model introduces three representative types of consumer segments : (1) a segment of power users who show rational purchase behaviors and use the

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... em very frequently, (2) a segment of rational normal users who also have rationality in purchase behaviors but do not use the system very frequently, and (3) a segment of myopic normal users who are stimulated to purchase a system only by the system price and do not use it very frequently. Under the proposed model, it is suggested that the manufacturer should not target the power users only but should attract myopic normal users as well to be successful in the business.