Competitive Information Systems in Support of Pricing

Considerable attention has recently been paid to the opportunities presented by information systems technology for implementing, or even driving, corporate strategy. But organizations attempting to identify systems that provide competitive advantage are finding the search to be frustrating and often unrewarding. This paper combines two familiar information systems concepts, the Anthony model and information attributes, to produce a framework for identifying one class of competitive information systems, systems in support of product pricing. For the vast majority of companies operating in imperfect markets, pricing is an information intensive process, in which ambiguous cost projections are balanced with elusive estimates of demand in an attempt to satisfy conflicting stakeholders. As such, pricing presents a rich opportunity to creatively apply information systems technology for competitive advantage. To assist in identifying applications we present a framework to structure the search and a series of working examples that can motivate synergistic discovery. The framework, shown below, categorizes pricing information systems according to decision type and information attributes. The Y-axis contains the three levels of management decision making proposed by Anthony [1965]; four areas of pricing decision-choosing a pricing strategy, setting the basic price level, determinign the price structure, and the price administration- are mapped into the Anthony model. The X-axis includes categories of information attributes taht information systems are likely to impact. We illustrate the matrix by mapping examples into the cells. We are hopeful that readers familiar with a particular firms\u27s attributes and competitive environment will find that the examples help stimulate the discovery of new pricing applications. The paper concludes with some thoughts on using the framework. An appendix to the paper presents a pricing primer for those unfamiliar with the pricing process and its information requirements

First come, first served: an analysis of pioneer and follower firms' market and nonmarket actions in the European mobile telephone industry

This study examines the relationship between erosion of the first-mover's market share and the differences in competitive behaviour of pioneer firms and followers. Particularly, we pay particular attention to market actions related to innovation, pricing and promotion, and to non-market actions related to judicial issues. The empirical study has been carried out with companies that are present in a dynamic context, such as the European mobile telephone industry. Our results show that when followers take more non-market actions than pioneers the negative effect on the firstentrant's advantage is more significant. On the contrary, we have not found a significant impact of innovating and pricing actions

Meter Scoping Study

This report presents a summary of metering technology and cost information from past studies in an attempt to identify key barriers to more widespread implementation

eEnabled internet distribution for small and medium sized hotels: the case of hospitality SMEs in Athens

Advances in information and communications technologies (ICTs) have strategic implications for a wide range of industries. Tourism and hospitality have dramatically changed by the ICTs and the Internet and gradually emerge as the leading industry on online expenditure. The Internet revolutionised traditional distribution models, enabled new entries propelled both disintermediation and reintermediation and altered the sources of competitive advantage. This paper explores the strategic implications of ICTs and the perceived advantages and disadvantages of Internet distribution for small and medium-sized hospitality enterprises (SMEs). Primary research in Athens hotels demonstrates the effects of the Internet and ICTs for secondary markets, where there is lower penetration and ICT adoption. Interviews and questionnaires identified a number of strategies in order to optimise distribution. The analysis illustrates the strategic role of ICTs and the Internet for hospitality organisations and Small and Medium-sized organisations in general. Most hotels employ a distribution mix that determines the level and employment of the Internet. The paper demonstrates that only organisations that use ICTs strategically will be able to develop their electronic distribution and achieve competitive advantages in the future

Dynamic Pricing, Advanced Metering, and Demand Response in Electricity Markets

Presents an overview and analysis of the possible approaches to bringing an active demand side into electricity markets. Part of a series of research reports that examines energy issues facing California

Generating Value Through Open Source: Software Service Market Regulation and Licensing Policy

In the software industry, commercial open-source software vendors have recognized that providing services to help businesses derive greater value in the implementation of open source–based systems can be a profitable business model. Moreover, society may greatly benefit when software originators choose an open-source development strategy as their products become widely available, readily customizable, and open to community contributions. In this study, we present an economic model to study how software licensing attributes affect a software originator’s decisions, aiming to provide policy makers with insights into how welfare-improving, open-source outcomes can be incentivized. We show that when a competing contributor is apt at reaping the benefits of software development investment, a less restrictive open source license (e.g., Berkeley Software Distribution, or BSD style) can improve welfare. On the other hand, when the originator is better at leveraging investment and service costs are high, a more restrictive license (e.g., General Public License, or GPL style) can be best for social welfare even when a contributor can cost-efficiently develop the software. The online appendix is available at https://doi.org/10.1287/isre.2017.0726

Asymmetric information, self-selection and pricing of insurance contracts: the simple no-claims case

This paper presents an optional bonus-malus contract based on a pri-ori risk classification of the underlying insurance contract. By inducing self-selection, the purchase of the bonus-malus contract can be used as a screening device. This gives an even better pricing performance than both an experience rating scheme and a classical no-claims bonus system. An application to the Danish automobile insurance market is considered

A Competitive Bidding Approach to Medicare Reform

Medicare reform is a critical issue for the public agenda. The most promising option for addressing Medicare reform is competitive bidding -- using health plans' bids to determine the government's contribution to a basic set of benefits in every market area. This paper begins with a review of the history of competitive bidding in Medicare. It then moves to a definition of terms, which is crucial in any discussion of competitive pricing because the often-heated public debate around these issues frequently distorts positions and confuses issues by conflating different terms and making some arguments appear other than they are. Following this terminological exercise, the report includes a series of sections discussing competitive bidding in Medicare, with special focus on the challenges to introducing it

Market design

Europe is liberalising electricity in accordance with the European Commission’s Electricity Directives. Different countries have responded differently, notably in the extent of restructuring, treatment of mergers, market power, and vertical unbundling. While Britain and Norway have achieved effective competition, others like Germany, Spain and France are still struggling to deal with dominant and sometimes vertically integrated companies. The Netherlands offers an interesting intermediate case, where good economic analysis has sometimes been thwarted by legalistic interpretations. Investment under the new Emissions Trading system could further transform the electricity industry but may be hampered by slow progress in liberalising European gas markets