We develop an analytical framework to investigate the competitiveimplications of personalized pricing (PP), whereby firms chargedifferent prices to different consumers based on their willingness topay. We embed PP in a model of vertical product differentiation and showhow it affects firms’...

We develop an analytical framework to investigate the competitive implications of personalized pricing technologies (PP). These technologies enable first-degree price discrimination: firms charge different prices to different consumers, based on their willingness to pay. We first show that, even...

In many industries, Internet referral services, hosted either byindependent third-party infomediaries or by manufacturers, serve asdigitally enabled lead generators in electronic markets, directingconsumer traffic to downstream retailers in a distribution network. Thisreshapes the extended...

In many industries, Internet referral services, hosted either by independent third-party infomediaries or by manufacturers, serve as digitally enabled lead-generators in electronic markets, directing consumer traffic to downstream retailers in a distribution network. This reshapes the extended...

We develop a model of vertical differentiation in the Internet search engine market. A key property of the model is that users who try out one engine may be dissatisfied with the results, and consult another engine in the same session. This residual demand allows lower quality engines to survive...

This research explores the economic rationale behind the increasing use of software rentals in the software industry in North America. The first part uses a two period game theoretic model to analyze a monopoly's pricing strategy. The monopoly produces two versions of the software, one in each...

The introduction of a new product to existing product lines typically gives rise to two opposing effects to the firm – market expansion (e.g. obtain more market shares from competitors or create new demand) and cannibalization (e.g. competition with other products offered by the same firm)....

Network caches are the storage centers in the supply chain for content delivery - the digital equivalent of warehouses. Operated by access networks and other operators, they provide benefits to content publishers in the forms of bandwidth cost reduction, response time improvement, and handling...

Firms constantly invest in improving product quality with innovative technologies. However, the out-come of research into innovative technology can be inconsistent. This paper investigates how a firm should choose between a mature technology and an innovative technology in upgrading an existing...

We study product recommendations in an online environment where a firm provides strategic product recommendations to consumers. We develop an analytical framework to integrate recommendations into the consumer product search process. The firm sells two imperfectly substitutable products with...