Bringing innovations to market is critical to industrial progress and economic growth. We explore the potential for IT to enable innovations, and thus improve productivity. We hypothesize that a knowledge stock of process-oriented R&D increases total factor productivity growth by leveraging...

This paper studies the setting in which a one-of-a-kind production (OKP) firm offers two types of orders (due-date guaranteed and due-date unguaranteed) at different prices to the sequentially arriving customers, who are also OKP production firms. The prices for two types of orders are quoted to...

In contrast to “search goods” whose true quality can be determined before inspection, we examine informa- tion goods that are “experience goods” — goods whose true quality can only be determined through use. We analyze a “version-to-upgrade” strategy where a monopolist generates...

We examine the implications of proximity to a physical store in offline-online retail competition where online dis-utility costs, which encompasses factors such as trust in the seller, returns, and after-sales support, are important. Building on classical models, we consider a traditional...

Sharing platforms such as Zilok.com enable the sharing of durable goods among consumers, and seek to maximize profits by charging transaction-based platform fees. We develop a model where consumers that are heterogeneous in their need to use a durable good decide whether to purchase and share...

Consumer ratings play a decisive role in purchases by online shoppers. Although the effect of the average and the number of consumer ratings on future product pricing and demand have been studied with some conclusive results, the effects of the variance of these ratings are less well understood....

We analyze trade-offs in the organization of public safety networks when network assets are distributed across districts and a district values network assets in its own and other districts. Comparing centralized, decentralized, and mixed organization forms, we capture two critical properties:...

We examine how one industry's productivity is affected by the IT capital of its customers and how this effect depends on industries' relative concentration. These customer-driven IT spillovers result from customers' IT investments in various information systems that reduce transaction costs...

The impact of Interorganizational Information Systems (IOS) on industrial markets is complex because of multiple individual effects. We separate the impact into three effects: value added to the marketed good, buyer IOS adoption costs, and less volume sensitive supplier costs. We conclude the...

We study franchise arrangements that allow franchisees with exclusive territories to own their customers. This permits franchisees to benefit from positive externalities in the franchise network through interfranchise transfers based on the purchases by their customers at other franchises on the...