This study evaluates the extent to which the added value to customers from a supplier's application of information technology (IT) is manifested through premium prices of a traded good. The study demonstrates that IT can add value to an otherwise undifferentiated good and shows how these...

Unprecedented changes in the economics of interaction, mainly as a result of advances in information and telecommunication technologies such as the Internet, are causing a shift toward more networked forms of organizations such as horizontal alliances — that is, alliances among firms in...

This paper finds that approximately one-third of the items in the CPI are governed by price regulations that can slow and add noise to the response of prices to changes in cost or demand conditions. Consequently, regulation is a possible partial explanation of sticky prices in the overall rate...

Information technology (IT) enables a new refinement of the horizontal network organization. We show that IT can be applied to a hybrid form of market and hierarchy, franchis­ing, and demonstrate how the resulting horizontal network organization can be an improved organization form....

In distributed operations with positive externalities between branches, local underin­ vestment occurs because one branch does not account for the impact of its actions on other branches. Previous work found that an IT-enabled incentive mechanism called "ownership of customers" (OoC) reduced...

Firms which employ a new technology to increase the quality of goods sold often require that customers adopt some aspect of the technology, and this adoption is typically costly. This study proposes a model of goods supported by interorganizational information systems (IOS) that captures the...

Customers often resist the adoption of electronic communication innovations offered by suppliers because of customer adoption costs. In addition to tangible adoption costs, for example the purchase of new technology, there are intangible costs, often related to organizational inertia and...

Using object-concepts as a matching framework, we provide guidelines for identifying what types of problems are best served by which knowledge representation technique. We find that production rules are best for hierarchical classification problems, because they support...

We study the impact of information technology (IT) on the profitability of individual organization designs and on the relative profitability of different organization designs. We develop models where organization design is defined by the location of investment decision authority. We consider...

The most difficult challenge facing a market leader is maintaining its leading position. This is especially true in information technology and telecommunications industries, where multiple product generations and rapid technological evolution continually test the ability of the incumbent to stay...