License or Subscription? Pricing Information Goods with Value Depreciation and Network Effects

2013 ◽  
Author(s):  
Yifan Dou ◽  
Yu Jeffrey Hu ◽  
D. J. Wu
Keyword(s):  
Network Effects ◽  
Information Goods ◽  
Subscription Pricing

Competitive pricing of information goods: Subscription pricing versus pay-per-use

1999 ◽  
Vol 13 (2) ◽  
pp. 447-470 ◽  
Author(s):  
Peter C. Fishburn ◽  
Andrew M. Odlyzko
Keyword(s):  
Information Goods ◽  
Subscription Pricing ◽  
Competitive Pricing

Fixed fee versus unit pricing for information goods; competition, equilibria, and price wars

First Monday ◽  
1997 ◽  
Author(s):  
Peter C. Fishburn ◽  
Andrew M. Odlyzko ◽  
Ryan C. Siders
Keyword(s):  
Word Processing ◽  
Main Concern ◽  
Information Goods ◽  
Marginal Costs ◽  
Clear Winner ◽  
Price Wars ◽  
Subscription Pricing ◽  
Competitive Equilibria ◽  
Unit Pricing ◽  
Fixed Fee

Information goods have negligible marginal costs, and this will create possibilities for novel distribution and pricing methods. The main concern of this paper is with pricing of goods that are likely to be consumed in large quantities by individuals. For example, will software continue to be sold at a fixed price for each unit, or will it be paid for on the basis of usage? There is substantial evidence both from observing marketplace evolution and from surveys that customers overwhelmingly prefer subscription pricing. It turns out that even if we ignore this factor, per-use pricing is not a clear winner, and therefore when the preference effect is taken into account, subscription pricing is likely to dominate. We model competitive pricing between two companies that supply essentially equivalent services (such as movies or word processing software). One company charges a fixed fee per unit, while the other charges on a per-use basis. Each is interested in maximizing its revenue. We consider instances of the models that have stable competitive equilibria between suppliers along with situations that are unstable and, in the absence of collusion, lead to ruinous price wars.

Born global on blockchain

2018 ◽  
Vol 28 (1) ◽  
pp. 19-34 ◽  
Author(s):  
Tatiana Zalan
Keyword(s):  
Network Effects ◽  
Born Global ◽  
Information Goods ◽  
Economics Of Information ◽  
Ongoing Research ◽  
Global Literature ◽  
Content Type ◽  
Research Opportunities ◽  
Blockchain Technology ◽  
Start Ups

Purpose The purpose of this paper is to alert international business (IB) and international entrepreneurship (IE) researchers of a new phenomenon and novel research opportunities arising as a result of digital innovations brought about by the new, decentralized internet popularly known as “blockchain”. The paper contains a general overview of the blockchain technology and maps connections with the IB/IE literature, focusing on explaining accelerated internationalization of firms that are born global on blockchain. Design/methodology/approach The paper is a viewpoint based on the author’s ongoing research on blockchain and fintech and reflections on the born global literature. The paper has benefited from the author’s insights through her involvement in the global blockchain community as an investor and advisor. Findings The author argues for establishing a theoretical link between the born global literature and the literature on the economics of information goods and platform economics to explain the pace of international growth in the context of blockchain start-ups. Research limitations/implications The author urges IB/IE researchers to pay attention to research opportunities in the blockchain area, especially those related to explaining rapid internationalization of digital start-ups and a new organizational form for organizing cross-border activities known as decentralized autonomous organization. Originality/value Three factors are shown to contribute to a rapid internationalization of blockchain start-ups: network effects, solving the chicken-and-egg problem and building an ecosystem around the evolving technology.

Transformation of education as a metatrend of the digital economy

2020 ◽  
Vol 16 (10) ◽  
pp. 1960-1979
Author(s):  
N.A. Egina ◽  
E.S. Zemskova
Keyword(s):  
Human Capital ◽  
Social Transformation ◽  
Network Effects ◽  
Digital Economy ◽  
Network Education ◽  
Economic Progress ◽  
Positive Externalities ◽  
Communication Processes ◽  
Education Network ◽  
The Impact

Subject. The study focuses on the impact of the digital economy determinants of the education transformation. Objectives. The article provides our own approach treating the education capital as a specific asset of the digital economy, which has an acceleration effect and sets up new trends in education through integrative networks. Methods. The study is based on principles of the systems integration, cross-disciplinary and multidisciplinary approaches. Results. The socio-economic progress was found to be determined with properties of human capital, which are solely specific to the digital economy. In new circumstances, it gets more important for actors of global, national, corporate and social networks to more actively cooperate within distributed networks in order to train high professionals, who would have skills in information networks. Thus, they would raise a new form of human capital – the capital of network education (network-based education capital). We describe positive externalities that arise when the educational sector joins communication processes. We illustrate how educational forms evolves, which are typical of a certain phase of the socio-economic development. The education capital was discovered to grow into a specific asset generating the quasi-rent and working as a social ladder only provided more actors are involved into the network. Conclusions and Relevance. Studying the evolution of educational forms through the cross-disciplinary method, we discovered the need for a system approach, which would help substantiate its transformation in the time of the digital economy, and the emergence of network-based education. These are technologies and tools of the digital economy that become unique factors generating the acceleration effect of the educational capital and ensuring the use of diverse network effects for the formation of intellectual capital and their social transformation.

Principles for sharing economy formation in the digital society

2020 ◽  
Vol 16 (5) ◽  
pp. 800-821
Author(s):  
E.V. Popov ◽  
K.A. Semyachkov
Keyword(s):  
Network Effects ◽  
Sharing Economy ◽  
Network Effect ◽  
Industrial Society ◽  
Economic Activities ◽  
Digital Platforms ◽  
Digital Society ◽  
Modern Economy ◽  
Characteristic Features ◽  
The Impact

Subject. The article addresses economic relations that are formed in various areas of economic application of digital platforms. The target of the research is the modern economy of digital platforms across different economic activities. Objectives. The aim is to systematize principles for share economy formation in the context of the digital society development. Methods. We employ general scientific methods of research. Results. The study shows that the development of digital platforms is one of the most important trends in the development of the modern economy. We classified certain characteristic features of modern digital platforms, analyzed principles for their creation. The paper emphasizes that the network effects achieved through the use of digital platforms are an important factor in the development of the share economy. The network effect describes the impact of the number of the platform users on the value created for each of them. The paper also considers differences in the organization of traditional economy companies and companies that are based on the digital platform model, reveals specifics of changes in socio-economic systems caused by the development of digital platforms, systematizes principles of the sharing economy formation in the context of the digital society development. Conclusions. The analyzed principles for sharing economy development on the basis of digital platforms can be applied to create models for the purpose of forecasting the transformation of economic activity in the post-industrial society.

СОЦИАЛЬНО-ЭКОНОМИЧЕСКИЕ КОНФЛИКТЫ В РАМКАХ «КАПИТАЛИЗМА ПЛАТФОРМ»

2019 ◽  
Vol 14 (3) ◽  
pp. 33
Author(s):  
L. V. Tomin
Keyword(s):  
Large Scale ◽  
Network Effects ◽  
Corporate Control ◽  
Balance Of Power ◽  
Negative Effects ◽  
Potential Threat ◽  
Communication Infrastructure ◽  
Political Effects ◽  
Information And Communication ◽  
Integrated Information

The article is devoted to the analysis of the structure, the peculiarities of functioning and the socio-economic and political effects of the «platform capitalism». The basis of this model is the network effects produced by the integrated information and communication infrastructure, which contribute to the monopolization and the constant expansion of platform companies into new areas. The principle of functioning of this infrastructure is the continuous collection and further monetization of data extracted from the interactions of individuals among themselves or with one of the elements of a digitalized economy or government structures. Such an infrastructure — forms a potential threat of strengthening state and corporate control over citizens. In addition, the activities of platform companies produce negative effects on the labor market, reinforcing the process of precarization of employment. The integrated information and communication infrastructure of platform companies form a system of a kind of «digital Taylorism», which deprives the employee of autonomy and privacy in the workplace. The influence of digitalization, subjected to the technocratic logic of the neoliberal model of governance in democratic countries, strengthens the de-politicization of relations between the citizen and the state and further changes the balance of power between labor and capital in favor of the latter. Large-scale protests of the last years against the companies of “capitalism of platforms” demonstrated the structural contradictions of this model and formed new forms of organization and actions of grassroots workers of the “digital economy”.

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