Trial and Pricing Strategies of Software Market with Competition and Network Effects

2016 ◽  
Author(s):  
Zhenhua Wu ◽  
Zhijie Lin ◽  
Yong Tan
Keyword(s):  
Network Effects ◽  
Pricing Strategies ◽  
Software Market

Effects of Quality Improvement and Upgrading on Software Market Disruption

2018 ◽  
Vol 9 (4) ◽  
pp. 1-15 ◽  
Author(s):  
Evangelos Katsamakas
Keyword(s):  
Network Effects ◽  
Theory Model ◽  
Future Research ◽  
Pricing Strategies ◽  
Digital Goods ◽  
Software Market ◽  
User Adoption ◽  
Period 2 ◽  
Market Disruption ◽  
Competitive Pricing

Digital goods, such as software, are significant elements of the contemporary digital economy. The authors propose a model that characterizes dynamic profit-maximizing competitive pricing strategies of digital goods with network effects. In a two-period game theory model, an incumbent firm has a quality advantage in period 1, but the potential disrupter has a quality advantage in period 2. They analyze pricing strategies and characterize conditions under which the potential disrupter becomes an actual disrupter. They discuss implications for user adoption of digital goods and opportunities for future research.

Product Boundaries of the Software Market Within the Context of Competition Policy

2016 ◽  
Vol 2016 (6) ◽  
pp. 39-56
Author(s):  
Andrey Shastitko ◽  
Alexandr Kurdin ◽  
Anastasiya Morosanova
Keyword(s):  
Competition Policy ◽  
Network Effects ◽  
Legal Status ◽  
Market Competition ◽  
Product Market ◽  
Intellectual Activity ◽  
Legal Cases ◽  
Competition Analysis ◽  
Software Market ◽  
The Difference

The article analyses the main features of the intellectual activity results market through the lens of the product boundaries definition. Frequently the pirated copy is not considered as a substitute for original products in legal cases. However, unlicensed computer programs should be included in the product market boundaries regardless of its legal status if the consumer considers them as substitutes. The difference between these types of products (original and pirated) are hidden not in transformation but in transaction characteristics. It is also important to take into consideration the possible complementarity between pirated and original products expressed in the information and network effects. In order to assess the buyers’ choice it is necessary to adjust the methods evaluating product market boundaries prescribed by «The Procedure of market competition analysis» of the Russia’s Federal Antimonopoly Service.

scholarly journals Incompatibility, Product Attributes and Consumer Welfare: Evidence from ATMs

2008 ◽  
Vol 8 (1) ◽  
Author(s):  
Christopher R. Knittel ◽  
Victor Stango
Keyword(s):  
Direct Effect ◽  
Network Effects ◽  
Consumer Welfare ◽  
Product Attributes ◽  
Ceteris Paribus ◽  
Software Market ◽  
Mix And Match

Abstract Incompatibility in markets with network effects reduces consumers' ability to "mix and match" components offered by different sellers, but can also spur changes in product attributes that might benefit consumers. In this paper, we estimate the effects of incompatibility on consumers in a classic hardware/software market: ATM cards and machines. We find that ATM fees ceteris paribus reduce the network benefit from other banks' ATMs. However, a surge in ATM deployment accompanies the shift to surcharging. Even under conservative assumptions regarding how much of the surge is directly attributable to surcharging, greater deployment often completely offsets the harm from higher fees. The results suggest that policy discussions of incompatibility must consider not only its direct effect on consumers, but also its effect on product attributes.

scholarly journals Coordinating Demand and Supply for Crowd Logistics Platforms with Network Effect

2021 ◽  
Vol 2021 ◽  
pp. 1-14
Author(s):  
Wenjie Wang ◽  
Lei Xie
Keyword(s):  
Network Effects ◽  
Service Providers ◽  
Negative Impact ◽  
Positive Impact ◽  
Network Effect ◽  
Pricing Strategy ◽  
Pricing Strategies ◽  
Demand And Supply ◽  
Direct Network ◽  
Crowd Logistics

The crowd logistics platforms connect stochastic demand with uncertain delivery supply which is provided by independent service providers. Considering direct-network effects and cross-network effects between the demand and supply side, a dynamic surge pricing model for crowd logistics platforms is built. The pricing strategy is derived to coordinate the supply with demand to equilibrium. Furthermore, the pricing strategy minimizing cumulative delivery orders is analyzed. The numerical simulation results show that the dynamic surge pricing strategies can stimulate the uncertain delivery supply for maximizing platforms’ revenue. And, direct-network effects pose a positive impact on the dynamic surge pricing strategy. In contrast, the cross-network effects have a negative impact on the pricing strategy. However, direct-network effects and cross-network effects negatively influence platforms’ revenue.

scholarly journals Counteraction to Monopolistic Activity in the Field of Software on the Example of Cases against Microsoft

2018 ◽  
Vol 10 (2) ◽  
pp. 29-52
Author(s):  
Anastasia Kosyakina ◽  
Alina Podlesnaya
Keyword(s):  
Operating System ◽  
Operating Systems ◽  
Network Effects ◽  
Application Software ◽  
Dominant Position ◽  
Software Market ◽  
Indirect Network Effects ◽  
Behavioral Aspects ◽  
Vertical Restrictions

The present work is devoted to the description of the evolution of antimonopoly cases brought against Microsoft by the American, European and Russian antimonopoly authorities. The focus of this work is on assessing the ability of Microsoft as a manufacturer of an operating system that occupies a dominant position that can influence competition in the application software market, including the browser market, antivirus protection and media players. The position in the market of operating systems is closely related to the presence of direct and indirect network effects. It was found that in most cases Microsoft was accused of obtaining vertical restrictions and related sales in order to restrict competition. In addition, in later antitrust cases against Microsoft, there has been an increasing focus on behavioral aspects.

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