Fair Play for Fair Pay: Fighting Digital Piracy through Revenue Sharing

2023 | International Conference on Information Systems | Citations: 0

Authors: Fereidouni, Meysam; Vijairaghavan, Vaarun

Abstract: ... Expand

Abstract: Collapse

Topics: digital piracy IS economics participatory design consumer surplus producer surplus

Methods: design methodology

Theories: game theory

Regulating Algorithmic Learning in Digital Platform Ecosystems through Data Sharing and Data Siloing: Consequences for Innovation and Welfare

2021 | International Conference on Information Systems | Citations: 0

Authors: Kraemer, Jan; Shekhar, Shiva; Hofmann, Janina

Abstract: Algorithmic learning gives rise to a data-driven network effects, which allow a ... Expand

Abstract: Algorithmic learning gives rise to a data-driven network effects, which allow a dominant platform to reinforce its dominant market position. Data-driven network effects can also spill over to related markets and thereby allow to leverage a dominant position. This has led policymakers to propose data siloing and mandated data sharing remedies for dominant data-driven platforms in order to keep digital markets open and contestable. While data siloing seeks to prevent the spillover of data-driven network effects generated by algorithmic learning to other markets, data sharing seeks to share this externality with rival firms. Using a game-theoretic model, we investigate the impacts of both types of regulation. Our results bear important policy implications, as we demonstrate that data siloing and data sharing are potentially harmful remedies, which can reduce the innovation incentives of the regulated platform, and can lead overall lower consumer surplus and total welfare. Collapse

Topics: innovation management IS economics economic surplus consumer surplus service quality

Theories: game theory

Open Resource-Based View (ORBV): A Theory of Resource Openness

2019 | International Conference on Information Systems | Citations: 0

Authors: Schoder, Detlef; Schlagwein, Daniel; Fischbach, Kai

Abstract: Openness is often deeply embedded in information technology (IT); it can be both ... Expand

Abstract: Openness is often deeply embedded in information technology (IT); it can be both a driver for and a result of new forms of dealing with information resources and can make major differences for businesses. Resource-level theories explain competitive advantages and differences in the performance of firms through their exclusive possession and use of valuable, rare, inimitable, and non-substitutable (VRIN) resources. Increasingly, though, we find an interesting “openness” phenomenon in business practice: firms such as IBM, Google, Tesla, Facebook, and Apple have opened once proprietary VRIN information resources (e.g., digital content, code, and APIs) to public use via the Internet. Such open strategies challenge traditional resource-level theories that suggest protecting such resources rather than giving them away for free. We provide a theoretical explanation based on combining insights in the literatures on openness, value creation, and resourcelevel theories. We develop (1) the concept of “resources openness” in its two dimensions, access and control, and (2) a theoretical model to explain the impacts of these two openness dimensions on firms’ value creation and value appropriation. The paper increases our understanding of the nature and implications of openness. Collapse

Topics: value creation Google+ innovation management Facebook explicit knowledge

Methods: theory development

Theories: resource based view of the firm

MARKET MECHANISMS FOR NEIGHBOURHOOD ELECTRICITY GRIDS: DESIGN AND AGENT-BASED EVALUATION

2019 | European Conference On Information Systems | Citations: 0

Authors: Staudt, Philipp; Kã, Sven

Abstract: The increasing number of prosumers who both consume and produce electricity and ... Expand

Abstract: The increasing number of prosumers who both consume and produce electricity and the ongoing decentralization of the electricity system lead to the need for new market designs to allow for direct trading of electricity between neighbours. Most currently proposed mechanisms ignore the grid restrictions, which might result in an infeasible dispatch and threaten the system stability. We propose a mechanism that considers grid restrictions and finds the optimal dispatch without relying on a centralized entity such as an independent system operator to oversee the system. We compare the results of the proposed mechanism to a nodal pricing approach and evaluate the welfare distribution among market participants as well as the exposure to market power using agent-based simulation. We find that the welfare distribution does not depend on the technical specifications of the proposed bilateral pricing mechanism but on the grid topology and that the possibility to exercise market power is equally high as under nodal pricing. Collapse

Topics: price management IS economics consumer surplus producer surplus

Methods: computational algorithm simulation agent based simulation reinforcement learning

An Economic Analysis of Data Portability and Personal Data Markets

2018 | International Conference on Information Systems | Citations: 4

Authors: Haberer, Bastian; Schnurr, Daniel

Abstract: Personal Data Markets (PDMs) allow Internet users to sell their personal data di ... Expand

Abstract: Personal Data Markets (PDMs) allow Internet users to sell their personal data directly to firms. Therefore, they may balance the trade-off between facilitating firms’ access to personal information and guaranteeing users a sufficient compensation. In Europe, this is further facilitated by the new right to data portability, which enables users to transfer personal data between Internet services. Based on a game-theoretic model of two Internet platforms, which utilize users’ data to place targeted advertising, we investigate the impact of PDMs on firms’ optimal strategies, industry efficiency and consumer surplus. We find that PDMs can increase data creation due to explicit remuneration for consumers, but may also lower platforms’ investment in quality. More specifically, we identify three economic effects that arise with PDMs and show that their relative strength determines whether firms and consumers are ultimately better or worse off. Those results bear important managerial and policy implications for datadriven markets. Collapse

Topics: advertising management IS economics consumer surplus usability producer surplus

Methods: archival research usage data

Theories: game theory

Locational Marginal Pricing of Natural Gas subject to Engineering Constraints

2017 | HICSS | Citations: 0

Authors: Rudkevich, Alex; Zlotnik, Anatoly

Abstract: We derive a price formation mechanism to maximize social welfare for a pipeline ... Expand

Abstract: We derive a price formation mechanism to maximize social welfare for a pipeline network that delivers natural gas from suppliers to consumers. The system is modeled as a metric graph subject to physical balance laws for steadystate hydraulic flow on edges and mass balance at nodes. The pricing mechanism incorporates engineering constraints on local pressures and energy applied by gas compressors. Optimality conditions yield expressions for locational marginal prices for gas (gLMPs) and a decomposition of gLMPs into components corresponding to energy, compression, and two types of congestion. We demonstrate that price and pressure differentials between nodes have the opposite sign, so that price cannot decline in the direction of flow, and prove that the pricing mechanism is revenue adequate. We also present computational examples of congestion pricing for a small test network and a large-scale case study. Collapse

Topics: price management IS economics economic surplus producer surplus

Methods: case study optimization model theory development cross sectional research

Theories: economic theory

Product Line Extension in Consumer Software Markets in the Presence of Free Alternatives

2016 | Information Systems Research | Citations: 2

Authors: Baird, Aaron; Miller, Chadwick J.; Raghu, T. S.; Sinha, Rajiv K.

Abstract: Hypercompetitive consumer software markets pit incumbents against free alternati ... Expand

Abstract: Hypercompetitive consumer software markets pit incumbents against free alternatives and pirates. Although the extant literature has studied firm level strategic responses to consumer heterogeneity and piracy, there is a lack of understanding of consumer reactions to digital goods choice sets that include firm product extensions such as the introduction of premium or free alternatives. With context-dependent preferences as the theoretical basis, this study systematically examines the impact of piracy controls and product line extensions on welfare in a consumer software market context (i.e., willingness to pay (WTP) and changes in consumer and producer surplus). In two controlled experiments using double-bound-dichotomous-choice WTP elicitation, we investigate how piracy controls and product line extensions impact two different platforms of the same software (PC Adobe applications and mobile Adobe applications) in terms of propensity to pirate and WTP. We show that introducing a premium or free vertical extension has different impacts on consumers’ WTP for the focal product depending on whether it is a low-cost or high-cost market even when controlling for individual differences, such as price fairness perceptions, product feature value, brand perceptions, etc. By contrast, piracy controls reduce piracy rates but have a limited impact on consumer WTP for the focal product in both contexts. By calculating the overall welfare of the market, we show that there is alignment in consumer and producer interests at current and estimated optimal price levels in both high-cost and low-cost markets. However, the introduction of a free product extension leads to a higher surplus in the high-cost market, whereas the introduction of the premium product extension leads to a higher surplus in the low-cost market. Collapse

Topics: IS economics producer surplus social influence mobile platform willingness to pay

Methods: experiment survey descriptive statistic experimental design data transformation

Economics of B2C Sharing Platforms

2016 | International Conference on Information Systems | Citations: 0

Authors: Provin, Daniel; Angerer, Peter; Zimmermann, Steffen

Abstract: ... Expand

Abstract: Collapse

Topics: sharing platform business-to-consumer price management IS economics economic surplus

Methods: mathematical model theory development literature study

Theories: game theory

Family Preferences Concerning Online Privacy, Data Mining, and Targeted Ads: Regulatory Implications

2015 | Journal of Management Information Systems | Citations: 6

Authors: Clemons, Eric K.; Wilson, Joshua S.

Abstract: Young Internet users engage in risky or inappropriate behavior online that could ... Expand

Abstract: Young Internet users engage in risky or inappropriate behavior online that could either be embarrassing or harmful to their future. As importantly, young Internet users engage in online activities that reveal a great deal about the cost to serve them and their willingness to pay for goods and services, which could be used against them by well-informed sellers. Educational applications that collect users’ information are becoming ubiquitous in the classroom, presenting the opportunity for students’ data to be mined. We are not aware of prior studies that examine parental or students’ attitudes and preferences toward data mining of educational application accounts, and how these attitudes differ across several countries. We used three survey instruments to measure parents’ and students’ attitudes toward data mining of educational applications. Parents in all countries studied prefer far less data mining of students’ online activities than seems to be the current practice. Most importantly, aversion to data mining does not seem to be correlated with awareness of current practices of data mining of teens’ activities. This study highlights regulatory alternatives and suggests future research and future data requirements for designing appropriate regulatory interventions. The nature of the intervention will be guided by the nature of the causes of inappropriate online behavior and inappropriate selection of educational software. Intervention could range from no regulation needed, through providing greater transparency, to new and detailed legal requirements that software providers must meet. Collapse

Topics: privacy electronic mail IS economics online learning system consumer surplus

Methods: survey machine learning survey design Student's t-test Holm–Bonferroni method

Introduction

2015 | Group Decision and Negotiation | Citations: 0

Authors: Clímaco, João; Costa, João Paulo; Kersten, Gregory

Abstract: New technologies present both opportunities and challenges; Eva Gerstmeier (thi ... Expand

Abstract: New technologies present both opportunities and challenges; Eva Gerstmeier (this volume) notes that Internet provides market participants with a plethora of pricing mechanisms, including English auctions, name-your-own-price-mechanisms, and negotiations. There have been numerous studies about online auctions, negotiations, and group decision making, undertaken by researchers in behavioral economics, computer science, and management information systems; Gerstmeier's study is an example of contributions to group decision and negotiation research and practice.Internet and other information and communication technologies (ICTs) provide a platform for novel mechanisms for exchanging goods and services as well as information and ideas. The latter requires cooperation which, in a distributed and technology laden environment, may be very difficult and frustrating. Gwendolyn Kolfschoten, Jur Kosterbok and Alain Hoekstra (this volume) continue research initiated by Robert Briggs and de Vreede (2009) on collaboration engineering, which is based on the design and implementation of ThinkLets-a combination of a tool (a concrete configuration hardware and software technologies used to create a pattern of thinking) and a script (a set of events and instructions which people follow to create a pattern of thinking).While our personal and professional lives are affected by technological innovations, it would be an error to claim that technology replaced content-rich interactions among people, including conflict management. Models and methods of group decision and negotiation remain relevant and useful to the study of social processes. We should not forget, however, that models and methods are derived from axioms and paradigms; basing someone's reasoning on a wrong or irrelevant axiomatic system may produce a spectacular error. No one can show it better than Hervé Raynaud; he does it in the article which opens this volume, Can Chat Group Therapy Suggest a Paradigm for Axiomatized Collective Decision Process. 123 564 J. Clímaco et al.Hervé Raynaud, through his unique mix of humor and deep observations of human nature, discusses the axioms underlying choice, in particular multi-person and multicriteria choice. In three interconnected parts he reiterates the paradoxes and impossibilities which Kenneth J. Arrow, Gert Köhler and he himself identified and tried to resolve (Arrow and Raynaud 1986). Raynaud stresses that the logical structures of multi-criteria decision making and the emotional situations of the decision makers may be interconnected and that these connections need to be recognized and included in the construction of models. Failing to recognize them may produce unexpected and very negative results, which he illustrates with an example of a dramatic failure of sound therapeutic techniques which were employed without consideration of the patients' needs.Alessandro Luè and Alberto Colorni discuss the use of a system of methods to conduct a comprehensive environmental impact assessment. The study entitled Conflict analysis for environmental impact assessment: A case study of a transportation system in a tourist area, introduces two approaches to group decision making. The first approach requires that a group jointly engages in every step of the decision process. The second approach allows group members to engage in problem solving individually; only after everyone has solved the problem all group members seek consensus. The authors chose the second process and embed it in it a multi-attribute value model. There are seven types of stakeholders who are engaged in the process. In order to bring the process to a conclusion Luè and Colorni follow the advice of Keeney and Raiffa (1976) and propose a supra decision-maker who is responsible for assigning power indices to individual stakeholders and for the sensitivity analysis.One of the achievements of ICT is the ability of millions of people to communicate and access information rich resources. This opportunity led to the revival of interest in participatory democracy. Alfonso Mateos, Antonio Jiménez and Sixto Ríos-Insua are among the researchers who have been working in the development of models and tools that would allow citizens to actively participate in public decision-making. Their paper A group decision-making methodology with incomplete individual beliefs applied to edemocracy proposes a four-phase approach to solve a multi-attribute discrete problem with a large number of decision-makers. The core of their method is the specification of individual preferences, elicitation of weights, application of the Dempster-Shafer theory of evidence for attribute aggregation, computation of the expected utility for all alternatives, and finally, ranking of the alternatives. While the method is complex as it requires solving simultaneous equations and optimization problems, the authors show that its use is fairly simple and does not require specialized knowledge.In negotiations and, to a lesser degree group decision making, we assume the existence of conflict. Conflict may be apparent or real and the participants in both processes are expected to compromise and make concessions. Collapse

Topics: IS economics producer surplus decision making willingness to pay

Methods: experiment