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Full-Text Articles in Management Information Systems
Optimal Reserve Prices In Name-Your-Own-Price Auctions With Bidding And Channel Options, Gangshu (George) Cai, Xiuli Chao, Jianbin Li
Optimal Reserve Prices In Name-Your-Own-Price Auctions With Bidding And Channel Options, Gangshu (George) Cai, Xiuli Chao, Jianbin Li
Information Systems and Analytics
Few papers have explored the optimal reserve prices in the name-your-own-price (NYOP) channel with bidding options in a multiple channel environment. In this paper, we investigate a double-bid business model in which the consumers can bid twice in the NYOP channel, and compare it with the single-bid case. We also study the impact of adding a retailer-own list-price channel on the optimal reserve prices. This paper focuses on achieving some basic understanding on the potential gain of adding a second bid option to a single-bid system and on the potential benefits of adding a list-price channel by the NYOP retailer. …
Pricing Software Upgrades: The Role Of Product Improvement & User Costs, Ram Bala, Scott Carr
Pricing Software Upgrades: The Role Of Product Improvement & User Costs, Ram Bala, Scott Carr
Information Systems and Analytics
The computer software industry is an extreme example of rapid new product introduction. However, many consumers are sophisticated enough to anticipate the availability of upgrades in the future. This creates the possibility that consumers might either postpone purchase or buy early on and never upgrade. In response, many software producers offer special upgrade pricing to old customers in order to mitigate the effects of strategic consumer behavior. We analyze the optimality of upgrade pricing by characterizing the relationship between magnitude of product improvement and the equilibrium pricing structure, particularly in the context of user upgrade costs. This upgrade cost (such …