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Full-Text Articles in Physical Sciences and Mathematics
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 …
Assessing The Impact Of Recommendation Agents On On-Line Consumer Unplanned Purchase Behavior, R. Eric Hostler, Victoria Y. Yoon, Zhiling Guo, Tor Guimaraes, Guisseppi Forgionne
Assessing The Impact Of Recommendation Agents On On-Line Consumer Unplanned Purchase Behavior, R. Eric Hostler, Victoria Y. Yoon, Zhiling Guo, Tor Guimaraes, Guisseppi Forgionne
Research Collection School Of Computing and Information Systems
Recommendation agents (RAs) have been used by many Internet businesses such as Amazon and Netflix. However, few authors have studied how consumer behavior is affected by those that make suggestions to online consumers based on their recent shopping behavior. Fewer still have examined the role that RAs play in influencing impulse purchasing decisions online. Our study developed a theoretical model to illustrate the impact of RAs on online consumer behavior. The model was tested through an online shopping simulation which used a collaborative filtering based product RA. Particular attention was paid to the effects of an RA on consumer behavior; …
Partnering For Perfection: An Economics Perspective On B2b Electronic Market Strategic Alliances, Qizhi Dai, Robert J. Kauffman
Partnering For Perfection: An Economics Perspective On B2b Electronic Market Strategic Alliances, Qizhi Dai, Robert J. Kauffman
Research Collection School Of Computing and Information Systems
New technological innovations have made it possible for new intermediaries to create value in business processes that involve the procurement of manufacturing and services supplies. Associated with these innovations is the emergence of business-to-business (B2B) electronic markets. These act as digital intermediaries that aim to reduce the transaction costs and mitigate the risks inherent in procurement. They improve buyers’ capabilities to search for attractive prices and also serve to increase the liquidity of sellers’ products. In this chapter, the authors explore the evolution of B2B e-market firms in terms of the strategies they employ to “perfect” their value propositions and …