Technology-driven commerce channels, such as the Web, possess several unique features that differentiate them from traditional channels. The interaction between firms operating across these differentiated channels involves interesting competitive dynamics that cannot be captured by isolated...

We study whether and how contractual arrangements (fixed price vs. time-and-materials contracts) change the effect of reputation, certification, and language characteristics on the chances of winning outsourcing contracts. Using a comprehensive dataset from an online outsourcing marketplace, we...

Sponsored search mechanisms, where advertisers bid for placement to be as close to the top in the listing of search results, are the fastest growing among online search models. Sponsored search in popular search services such as Google and Yahoo! employ an auction mechanism wherein firms can...

Secondary markets have adopted a number of quality signaling mechanisms such as certification to reduce information asymmetries between buyers and sellers in these markets. However the importance and value of these signals depends on the nature and extent of information asymmetries. With the...

This paper presents a model of local network effects in which agents connected in a social network each value the adoption of a product by a heterogeneous subset of other agents in their neighborhood, and have incomplete information about the structure and strength of adoption complementarities...

We analyze how di erent dimensions of a seller's reputation a ectpricing power in electronic markets. We do so by using text miningtechniques to identify and structure dimensions of importance fromfeedback posted on reputation systems, by aggregating and scoring thesedimensions based on the...

As Internet-based commerce becomes increasingly widespread, large datasets about the demand for and pricing of a wide variety of productsbecome available. These present exciting new opportunities for empiricaleconomic and business research, but also raise new statistical issuesand challenges. In...

This paper analyzes the optimal choice of pricing schedules andtechnological deterrence levels in a market with digital piracy wheresellers can influence the degree of piracy by implementing digitalrights management (DRM) systems. It is shown that a monopolist’soptimal pricing schedule can be...

This paper analyzes optimal pricing for information goods underincomplete information, when both unlimited-usage (fixed-fee) pricingand usage-based pricing are feasible and administering usage-basedpricing may involve transaction costs. It is shown that offeringfixed-fee pricing in addition to a...

This paper analyzes optimal monopoly pricing under incompleteinformation for a good that displays positive network effects. Incontrast with standard models of network effects (Katz and Shapiro,1985), the good modeled in this paper is consumed in variable quantitiesby heterogeneous customers, and...