Competing on price and guarantee compensation: Heeding cloud consumer's quality perception

2023 | Information & Management | Citations: 0

Authors: Chen, Fuzan; Lu, Aijun; Wu, Harris; Li, Minqiang; Feng, Haiyang

Abstract: As frequent service failures raise user concerns, guarantee compensation has bec ... Expand

Abstract: As frequent service failures raise user concerns, guarantee compensation has become a competitive instrument for cloud service providers (CSPs) in addition to price. This study proposes a game-theoretical model where two CSPs compete on both price and compensation. We consider two roles of compensation: (1) remedying user losses and (2) helping users to form quality perception. The results indicate that the higher-quality CSP should always guarantee higher compensation but may not always charge a higher price. We further investigate the signaling policies and find that the lower-quality CSP is more likely to signal a higher-than-actual quality. Collapse

Topics: IS economics consumer surplus service quality cloud computing privacy

Methods: game theoretical model optimization model cross sectional research theory development experiment

Theories: game theory

USING TRANSACTION COST ECONOMICS SAFEGUARDING TO REDUCE THE DIFFUSION OF DISINFORMATION ON SOCIAL MEDIA

2023 | European Conference On Information Systems | Citations: 0

Authors: Eccles, David; Kurnia, Sherah; Geard, Nicholas; Dingler, Tilman

Abstract: Human users contribute to the spread of disinformation on Social Media. To redu ... Expand

Abstract: Human users contribute to the spread of disinformation on Social Media. To reduce the spread, we apply Transaction Cost Economics (TCE) Safeguarding, which penalises the sharing of disinformation. Using the economic theory TCE positions Social Media platforms as free markets, in which actors are motivated to protect their assets and peer reputation. We conducted a study exploring TCE Safeguarding as a market correction mechanism to change the disinformation diffusion behaviour of users. Our findings show that users will be less likely to post a comment and more likely to correct their previous disinformation diffusion actions when TCE Safeguarding is applied. Focusing on Social Media as a market rather than its individual components may provide a mechanism to address the "fake news" phenomenon. Collapse

Topics: disinformation social media user behavior fake news Facebook

Methods: survey experiment Mann Whitney U test nonparametric test economic model

Theories: economic theory transaction cost economics

Perceived Social Norms, Token Rewards, and Cooperation in Decentralized Autonomous Organizations (DAOs)

2023 | International Conference on Information Systems | Citations: 0

Authors: Dong, Sichen; Hu, Daning; Chau, Michael

Abstract: Decentralized autonomous organizations (DAOs) offer a novel paradigm, fostering ... Expand

Abstract: Decentralized autonomous organizations (DAOs) offer a novel paradigm, fostering members' decentralized cooperation towards collective goals. Central to this are token rewards, aligning individuals' interests with DAO's collective goals to enhance cooperation. We introduce a theoretical model proposing that DAO members' perceived social norms impact the effectiveness of this token-based interest alignment mechanism by influencing members' tendencies to hold tokens, subsequently affecting their cooperative behaviors. By analyzing data collected from the prominent social DAO, Steem, our empirical findings validated this proposition. Our study stands at the forefront of elucidating the complex interplay between economic incentives and social motivations in DAOs, particularly the interest alignment mechanism. Moreover, based on the basic rationales of profit-sharing arrangements in traditional organizations, we transpose this understanding to the context of DAOs, offering a nuanced articulation of the interest alignment mechanism, which is absent in the current DAO literature. Collapse

Topics: social norm blockchain structured query language application programming interface social media

Methods: theory development economic model experiment

Theories: economic theory

Building an Equilibrium: Rules vs. Principles in Relational Contracts

2023 | Organization Science | Citations: 0

Authors: Gibbons, Robert; Grieder, Manuel; Herz, Holger; Zehnder, Christian

Abstract: Effective collaboration within and between organizations requires efficient adap ... Expand

Abstract: Effective collaboration within and between organizations requires efficient adaptation to unforeseen change. We study how parties build relational contracts that achieve this goal. We focus on the “clarity problem”—whether parties have a shared understanding of the promises they make to each other. Specifically, (a) a buyer and seller play a trading game in several periods; (b) they know their environment will change but do not know how; and (c) before any trading occurs, they can reach a nonbinding agreement about how to play the entire game. We hypothesize that pairs whose initial agreement defines a broad principle rather than a narrow rule are more successful in solving the clarity problem and in achieving efficient adaptation after unforeseen change. In our baseline condition, we indeed observe that pairs who articulate principles achieve significantly higher performance after change occurred. Underlying this correlation, we also find that pairs with principle-based agreements were more likely to both expect and take actions that were consistent with what their agreement prescribed. To investigate a causal link between principle-based agreements and performance, we implement a “nudge” intervention that induces more pairs to articulate principles. The intervention succeeds in coordinating more pairs on efficient quality immediately after the unforeseen change, but it fails to coordinate expectations on price, ultimately leading to conflicts and preventing an increase in long-run performance after the shock. Our results suggest that (1) principle-based agreements may improve organizational performance but (2) high-performing relational contracts may be difficult to build.History: This paper has been accepted for the Organization Science Special Issue on Experiments in Organizational Theory.Funding: We gratefully acknowledge financial support from the Massachusetts Institute of Technology Sloan School's Program on Innovation in Markets and Organizations.Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2021.1503. Collapse

Topics: competitive advantage organizational productivity organizational culture anonymity

Methods: experiment descriptive statistic survey laboratory experiment statistical power analysis

Theories: game theory organizational theory

DATA GOVERNANCE STRATEGIES FOR DATA PLATFORMS – A MULTIPLE CASE STUDY IN NURSING CARE

2023 | European Conference On Information Systems | Citations: 0

Authors: Gubser, Rahel; Schulte-Althoff, Matthias; Heinemann, Nils; Pohle, Jörg; Fürstenau, Daniel

Abstract: It is long established that data from platforms can be useful for deriving patt ... Expand

Abstract: It is long established that data from platforms can be useful for deriving patterned insights into people's behavior and conduct. Data platforms are important in fields with limited data availability and strict regulatory and hierarchical structures, such as healthcare and nursing analytics. Hence, we carefully examine three forerunner initiatives in establishing data platforms in the context of nursing care along normative, organizational, and technical dimensions of governance. The cases were selected due to their high level of comparability and to demonstrate three different types of data governance strategies understood as actions to reconcile conflicting interests regarding data and dealing with prevalent data protection lawranging from strictly processual approaches to the creation of synthetic data. These findings highlight the importance of considering data governance strategies concisely when building data platforms and suggest considerable variety in the configuration of data governance arrangements. Collapse

Topics: data governance decision making data protection healthcare data platform governance

Methods: qualitative interview case study theory development economic model archival research

The optimal asset trading settlement based on Proof-of-Stake blockchains

2023 | Decision Support Systems | Citations: 0

Authors: Li, Chao; Wang, Li; Yang, Haijun

Abstract: The Proof-of-Stake (PoS) protocol is booming in blockchain networks because of e ... Expand

Abstract: The Proof-of-Stake (PoS) protocol is booming in blockchain networks because of excessive energy consumption and slow block generation associated with the Proof-of-Work (PoW) protocol. In terms of transaction settlement, does the PoS protocol perform better than PoW? We build a transaction settlement model based on the PoS blockchain, describing how the staking income and costs affect settlement performance, and put forward a Successful Settlement Factor (SSF) to determine whether the settlement will be successful given the block size and block time. In addition, the system developers can adjust block size and block time according to SSF to achieve the best settlement performance. Finally, using historical data for a real-world blockchain network, our model demonstrates that the optimal block time, average settlement time, average settlement fees, and total settlement lag of the PoS blockchain are 23.41%, 23.29%, 23.23%, 23.31%, respectively, less than that of the PoW blockchain. Collapse

Topics: blockchain systems design ADA cryptocurrency decentralized finance

Methods: robustness check theoretical contribution experiment sensitivity analysis economic model

The Rise of Recommerce: Ownership and Sustainability with Overlapping Generations

2023 | International Conference on Information Systems | Citations: 0

Authors: Li, Rubing; Sundararajan, Arun

Abstract: ... Expand

Abstract: Collapse

Topics: price management willingness to pay information good systems development IS economics

Methods: economic model

Theories: contract theory

Digital Platform Strategy - A Systematic Critical Review

2023 | HICSS | Citations: 0

Authors: Mamonov, Stanislav

Abstract: While the transformative effect of digital platforms is broadly recognized, digi ... Expand

Abstract: While the transformative effect of digital platforms is broadly recognized, digital platform-related research evolved in largely disconnected streams focusing on technical platform architecture, network effects, and specific tactical decisions, without offering a holistic view of digital platform strategy. With the goal of advancing digital platform strategy research, we conduct a systematic critical review of research published in the leading Information Systems journals through a pragmatic business strategy lens that argues that markets, partnerships, differentiators, staging, and profit logic form the core elements of a holistic business strategy. We outline the core insights in extant research and we identify a number of promising opportunities for expanding the scope of digital platform strategy research in Information Systems. Collapse

Topics: digital platform strategic management innovation management electronic commerce electronic business

Methods: structured literature research theoretical contribution literature study computational algorithm economic model

An Economic Analysis of Subscription Sharing of Digital Services

2023 | International Conference on Information Systems | Citations: 0

Authors: Wu, Xiaokun; Wu, Shin-yi; Zhang, Zhongju

Abstract: Subscription sharing, where one shares her premium digital services subscriptio ... Expand

Abstract: Subscription sharing, where one shares her premium digital services subscription with other users, has become common due to subscription-sharing platforms like Togetherprice, Gowd, and Sharesub. This raises a question: Does it still make economic sense to offer a menu of subscription plans (e.g., an individual plan as well as a discounted family plan)? In this study, we look at a monopolist service provider that offers both plans but faces the potential threat of subscription sharing. We analyze the optimal prices and the impact of sharing on profit, customer surplus, and overall society benefits. Our results indicate that even with subscription sharing, offering both plans is at least as profitable as only offering individual plans. Under certain conditions, subscription sharing can even boost profits. Furthermore, our numerical analysis suggests that subscription sharing can benefit society. These findings suggest that subscription sharing is not necessarily as troublesome as one would have expected. Collapse

Topics: IS economics consumer surplus economic surplus price management price discrimination

Methods: economic model mathematical model

Multi-Party Certification on Blockchain and Its Impact in the Market for Lemons

2022 | Journal of Management Information Systems | Citations: 0

Authors: Bauer, Ingrid; Parra-Moyano, José; Schmedders, Karl; Schwabe, Gerhard

Abstract: Markets in which similar goods of different qualities are sold suffer from infor ... Expand

Abstract: Markets in which similar goods of different qualities are sold suffer from information asymmetries and their negative consequences. Dealers have established themselves, and mediate these markets through their use of quality signals. While these signals help to mitigate information asymmetries, these markets still function well below their optimum: a large share of goods sold are overpriced, and most of the benefits are reaped by intermediaries. In this paper we build on prior research that proposes the use of blockchain as an enabler for trusted, decentralized asset documentation. Applying a socio-technical lens, we describe how blockchain-enabled multi-party certification affords dealers the action potential to send signals that are more closely correlated to the unobservable quality of the underlying good (i.e., signals with a higher fit) than the signals they send today. We then both theorize and experimentally explore the market effects of the two types of signals. Using data from a laboratory market experiment with 210 participants, we find empirical evidence that multi-party certification affords dealers the action potential to send signals of significantly higher fit than those sent by intermediaries alone, leading to a reduction in information asymmetries, a more efficient allocation of goods, and an increase in market fairness. Collapse

Topics: blockchain affordance economic surplus IS economics user experience

Methods: experiment parametric test Student's t-test theory development statistical hypothesis test

Theories: lemon market theory theory of affordance