Tayfun Keskin

Exploring the trade-off between immediate gratification and delayed network externalities in the consumption of information goods

Abstract Our motivation for this paper originates from recent advances in consumption and payment technologies available for mobile commerce. Ubiquitous computing is enabling consumers worldwide to reach digital content and services whenever and wherever they request it. This capability further fuels “impatience” in consumption of such information goods. We model such consumer behavior using a hyperbolic discounting approach. A subset of these products, especially software, also inherit delayed network externalities as part of their consumption characteristics. This builds a tension between decision to consume now or to expedite consumption. We build a stylized model to assess the impact of immediate gratification on the profit maximizing behavior of a monopolist firm which produces an information good with network externalities. We find that serving “impatient” consumers is always profitable for a monopolist. For lower levels of network externalities, the monopolist can increase first period and decrease second period prices in equilibrium. As network externalities effect increases, prices converge to the traditional market (with exponential discounters) levels.

A Pricing Model for Cloud Computing Service

The major purpose of this study is to examine the cloud services pricing schemes and how they can improve previous pricing models by expanding the consumer set with time inconsistent behavior. The industry of cloud computing services is in its infancy, and firms employ pricing models based on conventional information goods. We offer a new approach to cloud services pricing considering the consumer discounting behavior. First, we propose a baseline model based on a profit maximizing duopolistic market serving to both rational and time inconsistent users. Our results reveal that the firms can profit from impatient users. In addition, we extend the baseline model with the effect of delayed network externalities because, by nature, information goods exhibit this property strongly. For the latter case, we show that the effect of network externalities reduces the impact of low switching costs and the monopolist benefits from time-inconsistent behavior. This study contributes to the theories of pricing information goods, and practitioners who make pricing decisions for cloud computing services.

Strategic Pricing of Horizontally Differentiated Services with Switching Costs: A Pricing Model for Cloud Computing

ABSTRACT The pricing of cloud computing services is a major challenge because the industry is in its infancy and firms employ pricing models developed for conventional electronic commerce. In this study, we offer a new approach to cloud services pricing that considers customer behavior. First, we propose a base model centered around a profit-maximizing duopolistic market serving both rational and time-inconsistent customers. Our results reveal that firms can profit from impatient customers. In addition, we extend the base model with the effect of delayed network externalities because typically information goods strongly exhibit this property. For the latter case, we show that the effect of network externalities reduces the impact of low switching costs and firms benefit from time-inconsistent behavior. This study contributes to theories of pricing information goods. Furthermore, practitioners who make pricing decisions for cloud computing services can benefit from our findings.

The evolution of IT towards cloud computing in China and U.S.

IT industry is both fundamental and strategic to a countrys economy, and it will continue to play a critical role in industry upgrade and economic development in the foreseeable future. The future of IT industry lies in cloud computing. In recent years, many countries in the world respond enthusiastically to cloud computing. The U.S., Japan and European countries have created strategies to develop cloud computing, aiming to become the leader in the new era. The Chinese government also sees cloud computing as a historic opportunity to rebuild competitive advantages and leapfrog western countries. Against this backdrop, this article compares and contrasts the evolution of IT towards cloud computing between China and western countries especially the U.S. Due to differences in cultures, development stages of IT industries, roles of governments as well as IT companies, we believe future cloud computing ecosystems will be very different between China and the U.S. Fully understanding these differences will greatly help governments as well as companies identify right strategic investments.

Introduction to Internet of Things: Providing Services Using Smart Devices, Wearables, and Quantified Self Minitrack

This minitrack addresses issues organizations face as they seek to provide services to end-users through wearable or autonomous mobile devices using the emerging Internet of Things (IoT) platform. The IoT allows connectivity of billions of mobile devices that can perform physical, sensing, and analytical services to users. Many of these devices exist in physical proximity of the user making up part of the user’s personal area network (PAN). Others are wearable devices that sense and track metrics about the quantified self and make up the user’s body area network (BAN). Finally, other mobile devices are semi-autonomous or autonomous and have the ability to move and actuate on their surroundings in an effort to provide services to users who may or may not be in physical proximity of the devices. These scenarios create business opportunities for organizations seeking to provide services to these users.

A Pricing Model for the Internet of Things Enabled Smart Service Systems

How can firms price their products and services, as their ecosystems get smarter? In order to answer this question, this paper provides a stylized model and its expansion to characterize industries that have become smarter and connected through the introduction of smart devices, a.k.a. the Internet of Things. First, we propose a basic model for a duopolistic multi-sided market with externality effects. Next, we expand this model to a case that considers cross-market network externalities. Our results reveal that, even if Internet of Things technologies facilitate complex multi-sided markets, there is a strategic pricing solution for firm profits. Moreover, a strategic firm can benefit from aforementioned cross-market externalities in terms of higher market share and equilibrium prices. This study not only contributes to the theories of pricing information goods, but also provides a guideline for practitioners who make pricing and other strategic decisions for the Internet of Things enabled goods and services.

Technology Role in Turbulent teams: An Analytical Model and Empirical Validation

This study analyzes the role of collaborative information technology (CIT) on team performance. We propose that the role of CIT can be more clearly understood by examining how it functions in the particular context of departure of an individual from a work team. Using an analytical model and laboratory experiments, we show that CIT serves to moderate the negative impact of a team memberâs departure, and it can play an indirect but potentially significant role in enhancing group performance. We explain why and how team performance benefits from CIT when departure occurs. Moreover, we employ transactive memory theory to explain how individuals develop and exchange knowledge in a group and how skills and knowledge can be lost due to departure.

Strategic Alignment of Enterprise Systems and Business Strategies under Systems and Bivariate Approaches

Across holistic and bivariate approaches, we examine complex relationships amongst strategic alignment, strategic enterprise systems flexibility, and business performance. Our evidence is based on data collected from top management in North America. We observe a positive correlation between alignment and business performance. In addition, the relationship between enterprise systems strategic flexibility and performance have shown more significant results with a robust correlation when alignment act as a mediator. Our results indicate that while systems approach provides more significant results, bivariate approach allows deeper examination of constructs.