Market Segmentation for Information Goods with Network Externalities

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ISBN 13 :
Total Pages : 28 pages
Book Rating : 4.:/5 (129 download)

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Book Synopsis Market Segmentation for Information Goods with Network Externalities by : Bing Jing

Download or read book Market Segmentation for Information Goods with Network Externalities written by Bing Jing and published by . This book was released on 2008 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: Positive externalities characterize the consumption of a majority of information goods such as software, various Internet services, and online communities. In a simple model of vertical differentiation, we show that network externality is a critical factor for the versioning of such information goods. In particular, a multi-product monopolist offers two versions of distinct qualities. The underlying rationale is that offering the low-end version expands the network size and thus enhances the (network) value of the high-end version, allowing the firm to charge a higher price for the high-end version. In addition, we show that the low-quality version may be offered for free under very general conditions. Competition between firms producing compatible products reduces their incentive to version their products due to the spillover effects in a shared product network.

Product Differentiation and Market Segmentation of Information Goods

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ISBN 13 :
Total Pages : 44 pages
Book Rating : 4.:/5 (129 download)

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Book Synopsis Product Differentiation and Market Segmentation of Information Goods by : Barrie R. Nault

Download or read book Product Differentiation and Market Segmentation of Information Goods written by Barrie R. Nault and published by . This book was released on 2006 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: Large sunk costs of development, negligible costs of reproduction and distribution and substantial economies of scale make information goods distinct from physical goods. Consequently,how to take advantage of the specific characteristics of information goods is an important managerial problem. Price discrimination and product differentiation are common ways this issue has been addressed. In previous literature, vertical differentiation and related pricing strategies have been researched in contexts such as nonlinear utility functions,network externalities, competition and anti-piracy. Little attention has been paid to the relationship between market segmentation and product differentiation. In this paper, we emphasize the interaction of market segmentation and product differentiation as we believe that any product differentiation must be based on existing market segmentation. In our model, we treat vertical differentiation as a special case of horizontal differentiation, and we model the interaction between different market segments showing the differences in product differentiation strategies when moving from horizontal to vertical differentiation. We find that it is always sub-optimal to differentiate information goods if the market is not fully differentiated or if characteristics of the information goods are not specifically designed for certain market segments. We divide characteristics of information goods into four categories according to the ease of differentiation and design guidelines for firms to differentiate their goods based on these characteristics. We further provide guidance on whether to merge one or several versions when costs for versioning information goods are significant.

Contemporary Research on E-business Technology and Strategy

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Publisher : Springer
ISBN 13 : 364234447X
Total Pages : 743 pages
Book Rating : 4.6/5 (423 download)

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Book Synopsis Contemporary Research on E-business Technology and Strategy by : Vasil Khachidze

Download or read book Contemporary Research on E-business Technology and Strategy written by Vasil Khachidze and published by Springer. This book was released on 2012-10-05 with total page 743 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book constitutes the proceedings of the International Conference on E-business and Strategy, iCETS 2012, held in Tianjin, China, in August 2012. The 65 revised full papers presented were carefully reviewed and selected from 231 submissions. The papers feature contemporary research on developments in the fields of e-business technology, information management systems, and business strategy. Topics addressed are latest development on e-business technology, computer science and software engineering for e-business, e-business and e-commerce applications, social networking and social engineering for e-business, e-business strategic management and economics development, e-business education, entrepreneurship and e-learning, digital economy strategy, as well as internet and e-commerce policy.

Two-Sided Network Effects

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ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.:/5 (137 download)

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Book Synopsis Two-Sided Network Effects by : Geoffrey Parker

Download or read book Two-Sided Network Effects written by Geoffrey Parker and published by . This book was released on 2012 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: How can firms profitably give away free products? This paper provides a novel answer and articulates tradeoffs in a space of information product design. We introduce a formal model of two-sided network externalities based in textbook economics - a mix of Katz & Shapiro network effects, price discrimination, and product differentiation. Externality-based complements, however, exploit a different mechanism than either tying or lock-in even as they help to explain many recent strategies such as those of firms selling operating systems, Internet browsers, games, music, and video. The model presented here argues for three simple but useful results. First, even in the absence of competition, a firm can rationally invest in a product it intends to give away into perpetuity. Second, we identify distinct markets for content providers and end consumers and show that either can be a candidate for a free good. Third, product coupling across markets can increase consumer welfare even as it increases firm profits. The model also generates testable hypotheses on the size and direction of network effects while offering insights to regulators seeking to apply antitrust law to network markets.

Market Segmentation and Strategic Standardization in the Presence of Network Externalities

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Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (92 download)

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Book Synopsis Market Segmentation and Strategic Standardization in the Presence of Network Externalities by : André de Palma

Download or read book Market Segmentation and Strategic Standardization in the Presence of Network Externalities written by André de Palma and published by . This book was released on 1990 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

LISS 2020

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Publisher : Springer Nature
ISBN 13 : 9813343591
Total Pages : 1056 pages
Book Rating : 4.8/5 (133 download)

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Book Synopsis LISS 2020 by : Shifeng Liu

Download or read book LISS 2020 written by Shifeng Liu and published by Springer Nature. This book was released on 2021-04-10 with total page 1056 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book contains the proceedings of the 10th International Conference on Logistics, Informatics and Service Sciences (LISS 2020), which is co-organized by Beijing Jiaotong University, Budapest University of Technology and Economics, in July 25–28 2020. This book focuses on the “AI and data-driven technical and management innovation in logistics, informatics and services” and aims to provide new research methods, theories and applications from various areas of management and engineering. In detail the included scientific papers analyse and describe communication processes in the fields of logistics, informatics, service sciences and other related areas. The variety of papers delivers added value for both scholars and practitioners. Information and communication technologies have been providing an effective network infrastructure and development platform for logistics and service operations.

Information Markets

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Publisher : Walter de Gruyter
ISBN 13 : 3110236109
Total Pages : 641 pages
Book Rating : 4.1/5 (12 download)

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Book Synopsis Information Markets by : Frank Linde

Download or read book Information Markets written by Frank Linde and published by Walter de Gruyter. This book was released on 2011-05-26 with total page 641 pages. Available in PDF, EPUB and Kindle. Book excerpt: Information Markets is a compendium of the i-commerce, the commerce with digital information, content as well as software. Information Markets is a comprehensive overview of the state of the art of economic and information science endeavors on the markets of digital information. It provides a strategic guideline for information providers how to analyse their market environment and how to develop possible strategic actions. It is a book for information professionals, both for students of LIS (Library and Information Science), CIS (Computer and Information Science) or Information Management curricula and for practitioners as well as managers in these fields.

The Economics of Network Industries

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Publisher : Cambridge University Press
ISBN 13 : 1139432273
Total Pages : 264 pages
Book Rating : 4.1/5 (394 download)

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Book Synopsis The Economics of Network Industries by : Oz Shy

Download or read book The Economics of Network Industries written by Oz Shy and published by Cambridge University Press. This book was released on 2001-01-08 with total page 264 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book introduces upper-level undergraduates, graduate students, and researchers to the latest developments in network economics, one of the fastest-growing fields in all industrial organization. Network industries include the Internet, e-mail, telephony, computer hardware and software, music and video players, and service operations in the banking, legal, and airlines industries among many others. The work offers an overview of the subject matter as well as investigations about specific industries. It conveys the essential features of how strategic interactions between firms are affected by network activity, as well as covering social interaction and its influence on consumers' choices of products and services. Virtually no calculus is used in the text, and each chapter ends with a series of exercises and selected references. The text may be used for both one- and two-semester courses.

Research and Practical Issues of Enterprise Information Systems II Volume 2

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Publisher : Springer Science & Business Media
ISBN 13 : 0387763112
Total Pages : 789 pages
Book Rating : 4.3/5 (877 download)

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Book Synopsis Research and Practical Issues of Enterprise Information Systems II Volume 2 by : Li Xu

Download or read book Research and Practical Issues of Enterprise Information Systems II Volume 2 written by Li Xu and published by Springer Science & Business Media. This book was released on 2007-10-15 with total page 789 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume presents work from the IFIP TC 8 WG 8.9 International Conference on the Research and Practical Issues of Enterprise Information Systems (CONFENIS 2007). Enterprise information systems (EIS) have become increasingly popular. EIS integrate and support business processes across functional boundaries in a supply chain environment. In recent years, more and more enterprises world-wide have adopted EIS such as Enterprise Resource Planning (ERP) for running their businesses.

Issues & Trends of Information Technology Management in Contemporary Organizations

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Publisher : IGI Global
ISBN 13 : 9781930708396
Total Pages : 878 pages
Book Rating : 4.7/5 (83 download)

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Book Synopsis Issues & Trends of Information Technology Management in Contemporary Organizations by : Information Resources Management Association. International Conference

Download or read book Issues & Trends of Information Technology Management in Contemporary Organizations written by Information Resources Management Association. International Conference and published by IGI Global. This book was released on 2002-01-01 with total page 878 pages. Available in PDF, EPUB and Kindle. Book excerpt: As the field of information technology continues to grow and expand, it impacts more and more organizations worldwide. The leaders within these organizations are challenged on a continuous basis to develop and implement programs that successfully apply information technology applications. This is a collection of unique perspectives on the issues surrounding IT in organizations and the ways in which these issues are addressed. This valuable book is a compilation of the latest research in the area of IT utilization and management.

ENTERprise Information Systems, Part I

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Publisher : Springer Science & Business Media
ISBN 13 : 3642164013
Total Pages : 472 pages
Book Rating : 4.6/5 (421 download)

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Book Synopsis ENTERprise Information Systems, Part I by : Joao Eduardo Quintela Varajao

Download or read book ENTERprise Information Systems, Part I written by Joao Eduardo Quintela Varajao and published by Springer Science & Business Media. This book was released on 2010-10-08 with total page 472 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book constitutes the proceedings of the International Conference on ENTERprise information systems, held Viana do Castelo, Portugal, in October 2010.

The Economics of Information Technology

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Publisher : Cambridge University Press
ISBN 13 : 1139456725
Total Pages : 114 pages
Book Rating : 4.1/5 (394 download)

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Book Synopsis The Economics of Information Technology by : Hal R. Varian

Download or read book The Economics of Information Technology written by Hal R. Varian and published by Cambridge University Press. This book was released on 2004-12-23 with total page 114 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Economics of Information Technology is a concise and accessible review of some of the important economic factors affecting information technology industries. These industries are characterized by high fixed costs and low marginal costs of production, large switching costs for users, and strong network effects. These factors combine to produce some unique behavior. The book consists of two parts. In the first part, Professor Varian outlines the basic economics of these industries. In the second part, Professors Farrell and Shapiro describe the impact of these factors on competition policy. The clarity of the analysis and exposition makes this an ideal introduction for undergraduate and graduate students in economics, business strategy, law and related areas.

Economics of Standards in Information Networks

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Publisher : Springer Science & Business Media
ISBN 13 : 3790826642
Total Pages : 308 pages
Book Rating : 4.7/5 (98 download)

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Book Synopsis Economics of Standards in Information Networks by : Tim Weitzel

Download or read book Economics of Standards in Information Networks written by Tim Weitzel and published by Springer Science & Business Media. This book was released on 2012-12-06 with total page 308 pages. Available in PDF, EPUB and Kindle. Book excerpt: Standards play a prominent role in systems characterized by interaction. In information systems, standards provide for compatibility and are a prerequisite for collaboration benefits. More generally speaking, standards constitute networks. In this work, a standardization framework based on an analysis of deficiencies of network effect theory and a game theoretic network equilibrium analysis is developed. Fundamental determinants of diffusion processes in networks (e.g. network topology, agent size, installed base) are identified and incorporated into a computer-based simulation model. As a result, typical network behaviour (specific diffusion patterns) can be explained and many findings from traditional network effect theory can be described as special cases of the model at particular parameter constellations (e.g. low price, high density). On this basis, solution strategies for standardization problems are developed, and a methodological path towards a unified theory of networks is proposed.

Organizational Change and Information Systems

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Publisher : Springer Science & Business Media
ISBN 13 : 3642372287
Total Pages : 468 pages
Book Rating : 4.6/5 (423 download)

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Book Synopsis Organizational Change and Information Systems by : Paolo Spagnoletti

Download or read book Organizational Change and Information Systems written by Paolo Spagnoletti and published by Springer Science & Business Media. This book was released on 2013-05-18 with total page 468 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book examines a range of issues emerging from the interaction of Information Technologies and organizational systems. It contains a collection of research papers focusing on themes of growing interest in the field of Information Systems, Organization Studies, and Management. The book offers a multidisciplinary view on Information Systems aiming to disseminate academic knowledge. It might be particularly relevant to IT practitioners such as information systems managers, business managers and IT consultants. The volume is divided into six sections, each one focusing on a specific theme. The content of each section is based on a selection of the best papers (original double blind peer reviewed contributions) presented at the annual conference of the Italian chapter of AIS, which has been held in Rome, Italy in September 2012.​

Bundling and Competition on the Internet

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ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.:/5 (137 download)

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Book Synopsis Bundling and Competition on the Internet by : Yannis Bakos

Download or read book Bundling and Competition on the Internet written by Yannis Bakos and published by . This book was released on 2015 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Internet has significantly reduced the marginal cost of producing and distributing digital information goods. It also coincides with the emergence of new competitive strategies such as large scale bundling. In this paper, we show that bunding can create "economies of aggregation" for information goods if their marginal costs are very low, even in the absence of network externalities or economies of scale or scope. We find that these economies of aggregation have several important competitive implications: 1. When competing for upstream content, larger bundlers are able to outbid smaller ones. 2. When competing for downstream consumers, the act of bundling information goods makes an incumbent seem "tougher" to single-product competitors selling similar goods. The resulting equilibrium is less profitable for potential entrants, and can discourage entry in the bundler's markets even when the entrants have a superior cost structure or quality. 3. Conversely, by simply adding an information good to an existing bundle, a bundler may be able to profitaby enter a new market and dislodge an incumbent who does not bundle, capturing most of the market share from the incumbent firm and even driving the incumbent out of business. 4. Because a bundler can potentially capture a large share of profits in new markets, single-product firms may have lower incentives to innovate and create such markets. However, bundlers may have higher incentives to innovate. For most physical goods, which have non-trivial marginal costs, the potential impact of large-scale aggregation is limited. However, we find that these effects can be decisive for the success or failure of information goods. Our results have particular empirical relevance to the markets for software and Internet content.

Complex Systems in Finance and Econometrics

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Publisher : Springer Science & Business Media
ISBN 13 : 1441977007
Total Pages : 919 pages
Book Rating : 4.4/5 (419 download)

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Book Synopsis Complex Systems in Finance and Econometrics by : Robert A. Meyers

Download or read book Complex Systems in Finance and Econometrics written by Robert A. Meyers and published by Springer Science & Business Media. This book was released on 2010-11-03 with total page 919 pages. Available in PDF, EPUB and Kindle. Book excerpt: Finance, Econometrics and System Dynamics presents an overview of the concepts and tools for analyzing complex systems in a wide range of fields. The text integrates complexity with deterministic equations and concepts from real world examples, and appeals to a broad audience.

Consumer Coordination in the Small and in the Large

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Publisher :
ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.:/5 (137 download)

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Book Synopsis Consumer Coordination in the Small and in the Large by : Daniel F. Spulber

Download or read book Consumer Coordination in the Small and in the Large written by Daniel F. Spulber and published by . This book was released on 2008 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Network effects occur in markets when consumers receive mutual benefits from consuming the same good. Markets with network effects that have generated policy concerns particularly include the information and communications technology (ICT) industries. Many economists and legal scholars argue that the presence of network effects creates a form of market failure known as "network externalities" and recommend new forms of antitrust and regulation targeted at particular firms in the communications and information technology industries. The debate over network effects is likely to have major consequences for these industries, with effects comparable to landmark antitrust cases involving IBM, AT&T, and Microsoft. This article provides a comprehensive examination of network effects that addresses the legal, economic, and technological basis for this phenomenon. The article develops a general framework for examining consumer coordination in markets with network effects. The discussion demonstrates that consumers can coordinate their consumption decisions to obtain the benefits of network effects. When there are small numbers of consumers, as Coase argued, low transactions costs allow the formation of informal agreements and formal contracts that are economically efficient. When there are large numbers of consumers, the market offers many mechanisms of spontaneous order in the sense of Hayek. The article refers to Coasian negotiation as "coordination in the small." The article refers to Hayekian spontaneous order as "coordination in the large." The discussion demonstrates that consumer coordination, both in the small and in the large, results in efficient consumption of network goods and adoption of new technologies. Market institutions are fully capable of addressing network effects. Antitrust policy based on correcting market failure due to "network externalities" is likely to impact adversely both competition and innovation. Network effects do not provide a basis for antitrust policy.