Showing 1 - 10 of 39
Customers often evaluate products at brick-and-mortar stores to identify their “best fit” product but buy it for a lower price at a competing online retailer. This free-riding behavior by customers is referred to as “showrooming” and we show that this is detrimental to the profits of the...
Persistent link: https://www.econbiz.de/10012974704
In this paper, we extend the understanding of versioning strategy of an information goods monopolist and provide new insights on when versioning is optimal. To do so, we derive the optimal product line or versions of an information good and the corresponding prices. By relaxing common...
Persistent link: https://www.econbiz.de/10012980733
Classic economic theory asserts that full information transparency entails information symmetry and, thus, market efficiency in trading. We test if this theory still holds in a blockchain-enabled marketplace where full information transparency is accomplished via blockchain. We leverage the data...
Persistent link: https://www.econbiz.de/10014357291
Persistent link: https://www.econbiz.de/10015193934
Persistent link: https://www.econbiz.de/10011874048
Access to a platform's services often requires consumers to use a complementary hardware product or service, e.g., Internet service is needed to access the YouTube platform. Typically, such access products are provided by third-party firms. More recently, however, some major platforms like...
Persistent link: https://www.econbiz.de/10012833900
In this paper, we model competition between two software product vendors, an incumbent and entrant, with specific focus on the role of switching costs. Contrary to conventional wisdom, we find that under certain conditions the switching costs imposed by the incumbent's product could actually...
Persistent link: https://www.econbiz.de/10012708835
As software ages, it is increasingly unable to leverage new technologies and fulfill evolving user requirements. Firms producing software products therefore get an opportunity to introduce and sell upgrades. Our research looks at the optimal intervals between upgrades, and whether these...
Persistent link: https://www.econbiz.de/10012708971
Persistent link: https://www.econbiz.de/10012504964
The presence of an open source software community has provided firms with a non-monetary compensation dimension: the firm can substitute wages for the flexibility it gives its programmers to participate in open source projects. The problem for the software firm is to determine the optimal extent...
Persistent link: https://www.econbiz.de/10014209858