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Many firms in the business to consumer market sell identical products online using auctions and posted prices at the same time. In this paper, we develop and analyze a model of the key tradeoffs sellers face in such a dual-channel setting that is built around the interplay of three design...
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A growing number of firms are strategically utilizing IT and the Internet to provide online services to consumers who buy their products. Online services differ from traditional services, such as maintenance services, because they often promote interactivity among the firm’s customers and...
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In this study, we model firms that sell a product and a complementary online service, where only the latter displays positive network effects. That is, the value each consumer derives from the service increases with the total number of consumers that subscribe to the service. In addition, the...
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