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Full-Text Articles in Business
Technology Investment Decision-Making Under Uncertainty, Robert J. Kauffman, Jun Liu, Dan Ma
Technology Investment Decision-Making Under Uncertainty, Robert J. Kauffman, Jun Liu, Dan Ma
Research Collection School Of Computing and Information Systems
Innovations involving information technology (IT) provide potentially valuable investment opportunities for industry and government organizations. Significant uncertainties are associated with decision-making for IT investment though, a problem that senior executives have been concerned about for a long time. The uncertainties include consumer, market and regulatory responses, IT-driven changes in operational and transactional performance, technology standards and competition, and future market conditions. All these things have an impact on organizations’ willingness to adopt. As a result, traditional capital budgeting, investment experience, and intuition have not been very effective in IT investment decision-making. We propose a new option-based stochastic valuation modeling approach …
Hedonic Valuation Of Online Game Participation, Robert J. Kauffman, Kwansoo Kim, Byungjoon Yoo
Hedonic Valuation Of Online Game Participation, Robert J. Kauffman, Kwansoo Kim, Byungjoon Yoo
Research Collection School Of Computing and Information Systems
We use hedonic valuation to establish a basis for valuing the time a user participates in an online gaming community. We distinguish between utilitarian and hedonic value. Our application involves elements of both utilitarian and hedonic value, however, the latter is much more important. We use an extensive data set involving a massive multi-player online role-playing game (MMORPG) from Korea. We specify and test econometric models that reflect the appropriate empirical structure for the setting, based on information about the players and the activities they engage in. The results permit us to estimate the hedonic value in monetary terms for …
Vertical Differentiation And A Comparison Of Online Advertising Models, Mei Lin, Xuqing Ke, Andrew B. Whinston
Vertical Differentiation And A Comparison Of Online Advertising Models, Mei Lin, Xuqing Ke, Andrew B. Whinston
Research Collection School Of Computing and Information Systems
Designing business models that take into consideration the role of advertising support is critical to the success of online services. In this paper, we address the challenges of these business model strategies and compare different ad revenue models. We use game theory to model vertical differentiation in both monopoly and duopoly settings, in which online service providers may offer an ad-free service, an ad-supported service, or a combination of these services. Offering both ad-free and ad-supported services is the optimal strategy for a monopolist because ad revenues compensate for the cannibalistic effect of vertical differentiation. In a duopoly equilibrium, exactly …
Are There Contagion Effects In Information Technology And Business Process Outsourcing?, Arti Mann, Robert J. Kauffman, Kunsoo Han, Barrie R. Nault
Are There Contagion Effects In Information Technology And Business Process Outsourcing?, Arti Mann, Robert J. Kauffman, Kunsoo Han, Barrie R. Nault
Research Collection School Of Computing and Information Systems
We model the diffusion of IT outsourcing using announcements about IT outsourcing deals. We estimate a lognormal diffusion curve to test whether IT outsourcing follows a pure diffusion process or there are contagion effects involved. The methodology permits us to study the consequences of outsourcing events, especially mega-deals with IT contract amounts that exceed US$1 billion. Mega-deals act, we theorize, as precipitating events that create a strong basis for contagion effects and are likely to affect decision-making by other firms in an industry. Then, we evaluate the role of different communication channels in the diffusion process of IT outsourcing by …