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Author: Ke-Wei Huang
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
In this paper we analyze a model of usage pricing for digital products with discontinuous supply functions, which characterizes a number of information technology-based products and services for which variable increases in demand are fulfilled by the addition of "blocks" of computing or network infrastructure. Such goods are often modeled as information goods with zero variable costs; in fact, the actual cost structure resembles a mixture of positive periodic fixed costs and zero marginal costs. This paper discusses the properties of a general solution for the optimal nonlinear pricing of such digital goods. We show that the discontinuous cost structure can be accrued as a virtual constant variable cost. This general solution is applied to solve two related extensions. First, this paper investigates the optimal technology capacity planning when the cost function is both discontinuous and declining over time. Second, we characterize the optimal costing for the discontinuous supply when it is shared by several business profit centers. Our finding suggests that the widely adopted full-cost-recovery policies are typically suboptimal.
Author: Ke-Wei Huang
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
In this paper we analyze a model of usage pricing for digital products with discontinuous supply functions, which characterizes a number of information technology-based products and services for which variable increases in demand are fulfilled by the addition of "blocks" of computing or network infrastructure. Such goods are often modeled as information goods with zero variable costs; in fact, the actual cost structure resembles a mixture of positive periodic fixed costs and zero marginal costs. This paper discusses the properties of a general solution for the optimal nonlinear pricing of such digital goods. We show that the discontinuous cost structure can be accrued as a virtual constant variable cost. This general solution is applied to solve two related extensions. First, this paper investigates the optimal technology capacity planning when the cost function is both discontinuous and declining over time. Second, we characterize the optimal costing for the discontinuous supply when it is shared by several business profit centers. Our finding suggests that the widely adopted full-cost-recovery policies are typically suboptimal.
Author: Ke-Wei Huang
Publisher:
ISBN:
Category :
Languages : en
Pages : 111
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Book Description
Author: Michael I. C. Nwogugu
Publisher: CRC Press
ISBN: 1498783945
Category : Business & Economics
Languages : en
Pages : 302
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Book Description
Illegal online file sharing costs companies tens of billions of dollars of lost revenues around the world annually and results in lost productivity, various psychological issues, and significant reduction of incentives to create and innovate. Legislative, technical, and enforcement efforts have failed. This book presents psychological theories about why people illegally share files online; analyzes and characterizes optimal sanctions for illegal online file sharing; introduces new models for pricing of network-access and digital-content to help reduce illegal online file sharing; introduces new content control and P2P systems; and explains why game theory does not work in pricing of network access.
Author: Petra Schulz
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
Author: Strader, Troy J.
Publisher: IGI Global
ISBN: 1616928794
Category : Technology & Engineering
Languages : en
Pages : 316
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Book Description
"This book covers a wide range of digital product management issues and offers some insight into real-world practice and research findings on the technical, operational, and strategic challenges that face digital product managers and researchers now and in the next several decades"--Provided by publisher.
Author: Tobias Glas
Publisher: Springer Nature
ISBN: 3030956954
Category : Business & Economics
Languages : en
Pages : 347
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Book Description
This book analyzes the emerging asset class of digital assets. When a new asset class originates, researchers try to understand some basic questions: Can digital assets, with the flagship asset bitcoin, really be considered a serious asset class? Since it is possible to trade digital assets, does it make sense to trade or to invest in these assets? How do digital assets compare to traditional asset classes like equities or bonds? After describing basic financial theory and breaking down the digital asset universe, this book provides fundamental knowledge with respect to this young and rising asset class. It focuses on special issues like the application of technical indicators, investment styles, asset pricing and portfolio construction. Furthermore, it offers remarks and links to other traditional asset classes and describes and warns of data issues in digital asset data.
Author: Gal Oestreicher-Singer
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
The effective management of digital rights is the central challenge in many industries making the transition from physical to digital products. We present a new model that characterizes the value of these digital rights when products are sold both embedded in tangible physical artifacts, and as pure digital goods, and when granting rights permitted by one's digital rights management (DRM) platform may affect the extent of digital piracy. Our model indicates that in the absence of piracy, digital rights should be unrestricted, since a seller can use its pricing strategy to optimally balance sales between physical and digital goods. However, the threat of piracy limits the extent to which digital rights should be granted: the value of digital rights is determined not only by their direct effect on the quality of legal digital goods, but by a differential piracy effect that can lower a seller's pricing power. When the latter effect is sufficiently high, granting digital rights can have a detrimental effect on value - our model indicates that this kind of effect is more likely to be observed for digital rights that aim to replicate the consumption experience of physical goods, rather than enhancing a customer's digital experience. We test the predictions of our analytical model using data from the ebook industry. Our empirical evidence supports our theoretical results, showing that four separate digital rights each have an economically significant impact on ebook prices, and establishing that the digital rights which aim to replicate physical consumption while increasing the threat of piracy are the ones that have negative impact on seller value. We also show that if the pricing of a digital good is keyed off that of an existing tangible good, optimal pricing changes for the former should be more nuanced, rather than simply mirroring changes in the price of the latter, and we discuss the effect of the technological sophistication of potential customers on optimal pricing and rights management. Our results represent new evidence of the importance of an informed and judicious choice of the different digital rights granted by a DRM platform, and provide a new framework for guiding managers in industries that are progressively being digitized.
Author: Stephan M. Liozu
Publisher: Taylor & Francis
ISBN: 1000892816
Category : Business & Economics
Languages : en
Pages : 340
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Book Description
Digital Pricing Strategy provides a best-practice overview of how companies design, analyze, and execute digital pricing strategies. Bringing together insights from academic and professional experts globally, the text covers essential areas of the value and pricing of data, platform pricing, pricing of subscriptions and monetization of the global environment. Case studies, examples and interviews from leading organizations, including Zuora, Honeywell, Relayr, Alcatel Lucent, ABB, Thales, and General Electric, illustrate key concepts in practice. To aid student learning, chapter objectives, summaries, and key questions feature in every chapter, alongside PowerPoint slides and a test bank available online for lecturers. Comprehensive and applied in its approach, this text provides postgraduate, MBA, and Executive Education students with an understanding of the capabilities, processes, and tools that enable executives to effectively implement digital transformations and capture value from digital innovations.
Author: Carl Shapiro
Publisher: Harvard Business Press
ISBN: 9780875848631
Category : Business & Economics
Languages : en
Pages : 374
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Book Description
As one of the first books to distill the economics of information and networks into practical business strategies, this is a guide to the winning moves that can help business leaders--from writers, lawyers and finance professional to executives in the entertainment, publishing and hardware and software industries-- navigate successfully through the information economy.
Author: Richard Duncan
Publisher: John Wiley & Sons
ISBN: 1118157796
Category : Business & Economics
Languages : en
Pages : 192
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Book Description
Why the global recession is in danger of becoming another Great Depression, and how we can stop it When the United States stopped backing dollars with gold in 1968, the nature of money changed. All previous constraints on money and credit creation were removed and a new economic paradigm took shape. Economic growth ceased to be driven by capital accumulation and investment as it had been since before the Industrial Revolution. Instead, credit creation and consumption began to drive the economic dynamic. In The New Depression: The Breakdown of the Paper Money Economy, Richard Duncan introduces an analytical framework, The Quantity Theory of Credit, that explains all aspects of the calamity now unfolding: its causes, the rationale for the government's policy response to the crisis, what is likely to happen next, and how those developments will affect asset prices and investment portfolios. In his previous book, The Dollar Crisis (2003), Duncan explained why a severe global economic crisis was inevitable given the flaws in the post-Bretton Woods international monetary system, and now he's back to explain what's next. The economic system that emerged following the abandonment of sound money requires credit growth to survive. Yet the private sector can bear no additional debt and the government's creditworthiness is deteriorating rapidly. Should total credit begin to contract significantly, this New Depression will become a New Great Depression, with disastrous economic and geopolitical consequences. That outcome is not inevitable, and this book describes what must be done to prevent it. Presents a fascinating look inside the financial crisis and how the New Depression is poised to become a New Great Depression Introduces a new theoretical construct, The Quantity Theory of Credit, that is the key to understanding not only the developments that led to the crisis, but also to understanding how events will play out in the years ahead Offers unique insights from the man who predicted the global economic breakdown Alarming but essential reading, The New Depression explains why the global economy is teetering on the brink of falling into a deep and protracted depression, and how we can restore stability.
