This note integrates the models of Dewan and Mendelson (1998) (DM) and Kyle (1985), extending the DM analysis of time-based competition in financial markets to the case of endogenous liquidity. The results enable us to examine the link between information technology investments, trading...

We model competition between two providers who serve delay-sensitive customers. We compare a generalized delay cost structure, where a customer's delay cost depends on her service valuation, with the traditional additive delay cost structure, where the delay cost is independent of the customer's...

We argue that industries and industry segments are characterized by a clockspeed that gauges the velocity of change in the external business environment and sets the pace of their firms' internal operations. Using data from the electronics industry, we develop and validate an integrated metric...

We consider a duopoly market with heterogeneous customer tastes. The firms play a two-stage game. First, each firm chooses whether to invest in mass customization, which would enable it to offer customized products that increasingly match each customer's ideal product as the chosen customization...

We model the effects of alternative coordination structures on the performance of a firm that faces uncertain demand in multiple horizontal markets. The firm's coordination structure is jointly determined by its decision-rights structure and by its information structure. We compare the...

We model concept testing in new product development as a search for the most profitable solution to a design problem. When allocating resources, developers must balance the cost of testing multiple designs against the potential profits that may result. We propose extreme-value theory as a...

We study markets for information goods and find that they differ significantly from markets for traditional industrial goods. Markets for information goods in which products are vertically differentiated lack the segmentation inherent in markets for industrial goods. As a result, a monopoly will...