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Author: Murat Tunc
Publisher:
ISBN:
Category : Consumer goods
Languages : en
Pages :
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Book Description
We examine the strategic implications of rating schemes in online marketplaces and peerto-peer platforms. In traditional online marketplaces, multi-dimensional rating scheme is superior to the single-dimensional rating scheme in reducing consumers’ uncertainty about the value of a product when consumers have heterogeneous preferences regarding the product quality attributes. However, we show that, when sellers respond to product ratings by adjusting their prices, the multi-dimensional rating scheme does not always benefit consumers. The main driver of the results is that the multi-dimensional ratings amplify the consumers’ perceptions of any underlying differentiation in the attributes of competing products, while simultaneously exposing the similarity between the products if they are homogeneous. Therefore, the rating scheme alters the heterogeneity in consumer perceptions and utility, which, in turn, affects the upstream price competition. In peerto-peer markets, many platforms use a bilateral review scheme in which both consumers and providers rate each other, unlike the more prevalent unilateral review scheme in which only consumers rate providers. We show that if the proportion of the low-cost consumers is less than a threshold, consumers are better off, the platform is worse off, and the providers are worse off under the bilateral review scheme than the unilateral review scheme. The key driver for these results is that the price competition between providers for the low-cost consumers can be fundamentally different under the different review schemes; the price competition affects the consumer preference for a provider and hence the match between consumers and providers, which ultimately determines the payoffs to participants and the social welfare. Our findings also contribute to the adverse selection literature by identifying the critical role played by demand and supply conditions on the impact of adverse selection
Author: Murat Tunc
Publisher:
ISBN:
Category : Consumer goods
Languages : en
Pages :
Get Book Here
Book Description
We examine the strategic implications of rating schemes in online marketplaces and peerto-peer platforms. In traditional online marketplaces, multi-dimensional rating scheme is superior to the single-dimensional rating scheme in reducing consumers’ uncertainty about the value of a product when consumers have heterogeneous preferences regarding the product quality attributes. However, we show that, when sellers respond to product ratings by adjusting their prices, the multi-dimensional rating scheme does not always benefit consumers. The main driver of the results is that the multi-dimensional ratings amplify the consumers’ perceptions of any underlying differentiation in the attributes of competing products, while simultaneously exposing the similarity between the products if they are homogeneous. Therefore, the rating scheme alters the heterogeneity in consumer perceptions and utility, which, in turn, affects the upstream price competition. In peerto-peer markets, many platforms use a bilateral review scheme in which both consumers and providers rate each other, unlike the more prevalent unilateral review scheme in which only consumers rate providers. We show that if the proportion of the low-cost consumers is less than a threshold, consumers are better off, the platform is worse off, and the providers are worse off under the bilateral review scheme than the unilateral review scheme. The key driver for these results is that the price competition between providers for the low-cost consumers can be fundamentally different under the different review schemes; the price competition affects the consumer preference for a provider and hence the match between consumers and providers, which ultimately determines the payoffs to participants and the social welfare. Our findings also contribute to the adverse selection literature by identifying the critical role played by demand and supply conditions on the impact of adverse selection
Author: Katarzyna Śledziewska
Publisher: Routledge
ISBN: 1000423352
Category : Business & Economics
Languages : en
Pages : 176
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Book Description
The unprecedented Covid-19 crisis revealed the scale and scope of a new type of economy taking shape in front of our very eyes: the digital economy. This book presents a concise theoretical and conceptual framework for a more nuanced analysis of the economic and sociological impacts of the technological disruption that is taking place in the markets of goods and services, labour markets, and the global economy more generally. This interdisciplinary work is a must for researchers and students from economics, business, and other social science majors who seek an overview of the main digital economy concepts and research. Its down-to-earth approach and communicative style will also speak to businesses practitioners who want to understand the ongoing digital disruption of the market rules and emergence of the new digital business models. The book refers to academic insights from economics and sociology while giving numerous empirical examples drawn from basic and applied research and business. It addresses several burning issues: how are digital processes transforming traditional business models? Does intelligent automation threaten our jobs? Are we reaching the end of globalisation as we know it? How can we best prepare ourselves and our children for the digitally transformed world? The book will help the reader gain a better understanding of the mechanisms behind the digital transformation, something that is essential in order to not only reap the plentiful opportunities being created by the digital economy but also to avoid its many pitfalls. Chapters 1, 3 and 5 of this book are available for free in PDF format as Open Access from the individual product page at www.routledge.com. They have been made available under a Creative Commons Attribution-Non Commercial-No Derivatives 4.0 license.
Author: Don Tapscott
Publisher: McGraw-Hill Companies
ISBN: 9780070633421
Category : Computers
Languages : en
Pages : 342
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Book Description
Looks at how the Internet is affecting businesses, education, and government, touching on the twelve themes of the new economy and privacy issues
Author: Ertz, Myriam
Publisher: IGI Global
ISBN: 1799875466
Category : Business & Economics
Languages : en
Pages : 554
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Book Description
In the past two decades, research on electronic commerce and platforms has thrived. Tremendous academic research has been conducted on this specific concept. Over the last decade, with the rise of applications and mobile technology, that stream of research has extended to the collaborative economy, more colloquially known as the sharing economy. The commonality between e-commerce and collaborative consumption being that they both occur online and rely predominantly on platforms. The Handbook of Research on the Platform Economy and the Evolution of E-Commerce is a comprehensive reference book offering a holistic perspective of the platform economy by connecting the e-commerce and collaborative economy streams into a common framework. As such, this integrated perspective offers a clearer understanding of the key trends in research and in managerial action, as well as an agenda for future studies and practice. This handbook emphasizes how the digital transition will create an increased merging between physical and digital activities, as well as the challenges and opportunities pertaining to this trend. Covering topics including sharing economy, Marketing 4.0, and digital applications, this book is essential for marketers, managers, executives, students, researchers, and academicians.
Author: Robin Mansell
Publisher: Edward Elgar Publishing
ISBN: 1789900611
Category : Business & Economics
Languages : en
Pages : 176
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Book Description
Artificial intelligence-enabled digital platforms collect and process data from and about users. These companies are largely self-regulating in Western countries. How do economic theories explain the rise of a very few dominant platforms? Mansell and Steinmueller compare and contrast neoclassical, institutional and critical political economy explanations. They show how these perspectives can lead to contrasting claims about platform benefits and harms. Uneven power relationships between platform operators and their users are treated differently in these economic traditions. Sometimes leading to advocacy for regulation or for public provision of digital services. Sometimes indicating restraint and precaution. The authors challenge the reader to think beyond the inevitability of platform dominance to create new visions of how platforms might operate in the future.
Author: Paul Belleflamme
Publisher: Cambridge University Press
ISBN: 1108625622
Category : Business & Economics
Languages : en
Pages : 275
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Book Description
Digital platforms controlled by Alibaba, Alphabet, Amazon, Facebook, Netflix, Tencent and Uber have transformed not only the ways we do business, but also the very nature of people's everyday lives. It is of vital importance that we understand the economic principles governing how these platforms operate. This book explains the driving forces behind any platform business with a focus on network effects. The authors use short case studies and real-world applications to explain key concepts such as how platforms manage network effects and which price and non-price strategies they choose. This self-contained text is the first to offer a systematic and formalized account of what platforms are and how they operate, concisely incorporating path-breaking insights in economics over the last twenty years.
Author: Antonio Manganelli
Publisher: Springer Nature
ISBN: 303089388X
Category : Law
Languages : en
Pages : 214
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Book Description
This book illustrates the challenges that regulators and policy makers have faced in the transition from the ‘old’ network industries to the new digital ecosystem. It succinctly describes the evolution of digital economy, its main actors, notably global digital platforms, as well as its interactions, interdependences, and trade-offs. Eventually, it proposes insights about why public rules are needed, what kind of rules could be more effective, fair, and efficient, and who should pose and enforce them. The book is opened by an introduction, dealing with Digital Transformation, Big Techs, and Public Policies, which provides a general conceptual and thematic framework to the following analysis but could be also read as a stand-alone paper. The following chapters are grouped in two parts: I. The Evolution of Digital Markets and Digital Rights, and II. Regulating Big Tech’s Impact on Market and Society. The secondary title - the European approach – has a twofold meaning. It highlights the fact that this work has a clear focus on EU law and policy - although the economic and institutional issues addressed are global phenomena, common to all world’s economies. In addition, it also underlines that European digital policy is not yet complete and effective. This book intends to provide a small contribution to the ongoing policy making process, as well as to the wider academic and policy debate.
Author: Geoffrey G. Parker
Publisher: W. W. Norton & Company
ISBN: 0393249123
Category : Business & Economics
Languages : en
Pages : 433
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Book Description
A practical guide to the new economy that is transforming the way we live, work, and play. Uber. Airbnb. Amazon. Apple. PayPal. All of these companies disrupted their markets when they launched. Today they are industry leaders. What’s the secret to their success? These cutting-edge businesses are built on platforms: two-sided markets that are revolutionizing the way we do business. Written by three of the most sought-after experts on platform businesses, Platform Revolution is the first authoritative, fact-based book on platform models. Whether platforms are connecting sellers and buyers, hosts and visitors, or drivers with people who need a ride, Geoffrey G. Parker, Marshall W. Van Alstyne, and Sangeet Paul Choudary reveal the what, how, and why of this revolution and provide the first “owner’s manual” for creating a successful platform business. Platform Revolution teaches newcomers how to start and run a successful platform business, explaining ways to identify prime markets and monetize networks. Addressing current business leaders, the authors reveal strategies behind some of today’s up-and-coming platforms, such as Tinder and SkillShare, and explain how traditional companies can adapt in a changing marketplace. The authors also cover essential issues concerning security, regulation, and consumer trust, while examining markets that may be ripe for a platform revolution, including healthcare, education, and energy. As digital networks increase in ubiquity, businesses that do a better job of harnessing the power of the platform will win. An indispensable guide, Platform Revolution charts out the brilliant future of platforms and reveals how they will irrevocably alter the lives and careers of millions.
Author: Martin Peitz
Publisher: Oxford University Press
ISBN: 0199978638
Category : Business & Economics
Languages : en
Pages : 615
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Book Description
The economic analysis of the digital economy has been a rapidly developing research area for more than a decade. Through authoritative examination by leading scholars, this handbook takes a closer look at particular industries, business practices, and policy issues associated with the digital industry. The volume offers an up-to-date account of key topics, discusses open questions, and provides guidance for future research. It offers a blend of theoretical and empirical works that are central to understanding the digital economy. The chapters are presented in four sections, corresponding with four broad themes: 1) infrastructure, standards, and platforms; 2) the transformation of selling, encompassing both the transformation of traditional selling and new, widespread application of tools such as auctions; 3) user-generated content; and 4) threats in the new digital environment. The first section covers infrastructure, standards, and various platform industries that rely heavily on recent developments in electronic data storage and transmission, including software, video games, payment systems, mobile telecommunications, and B2B commerce. The second section takes account of the reduced costs of online retailing that threatens offline retailers, widespread availability of information as it affects pricing and advertising, digital technology as it allows the widespread employment of novel price and non-price strategies (bundling, price discrimination), and auctions. The third section addresses the emergent phenomenon of user-generated content on the Internet, including the functioning of social networks and open source. The fourth section discusses threats arising from digitization and the Internet, namely digital piracy, privacy, and security concerns.
Author: Tymoteusz Doligalski
Publisher: Routledge
ISBN: 1000530809
Category : Business & Economics
Languages : en
Pages : 186
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Book Description
It has taken platforms only twenty years to become digital economy hubs. They have changed markets, enterprises, and society. They have expedited communication, collaboration, and trade for consumers, winning their attention and collecting their data. In doing so, they have made processes, products, and industries obsolete, and disrupted the expectations and behaviours of market players. This raises the question, are digital platforms global innovators or disruptive monopolists? Are they a solution to problems of the past or emissaries of a problematic future? This book provides a multi-faceted approach to platforms and their profound impact on markets and ecosystems. Economic, managerial, social, and political aspects are analysed, and the differentiation of platforms and their disruptive potential is reviewed. The book also examines the mechanism of achieving a monopolistic position, including in the international supply chain, and the greater influence of platforms on political activity and contemporary democracy. With examples from Poland, USA, and China, the contributions offer an international evaluation of disruptive platforms across a multitude of industries. The edited collection, prepared by scholars from the SGH Warsaw School of Economics, will be valuable to researchers and academics across the fields of strategic management, marketing, innovations, international business, and the digital economy.
