38,988 research outputs found

    Product Reviews and Competition in Markets for Repeat Purchase Products

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    This paper examines how information provided by online reviews influences firms\u27 pricing strategy for repeat purchase products. It is commonly understood that online reviews can reduce consumer uncertainty about product characteristics and, therefore, have the potential to increase product demand and firm profits. However, when considering repeat purchase products, online reviews have an additional effect in that they can alter consumers\u27 propensity to switch among products, which can intensify price competition and lead to lower profits. The strength of these potentially offsetting effects depends on the informativeness of consumer reviews, which is a function of both objective review accuracy and the ability of consumers to obtain information from reviews when their idiosyncratic preferences over product characteristics might differ from the preferences of reviewers. The interplay of these competing effects results in an S-shaped relationship between the quality of reviews and firm profits. There exists an optimal level of consumer informedness from the firms\u27 perspective, and competing firms may have incentives to facilitate consumer reviews in some markets but not in others. Given firms\u27 strategic pricing, consumers may also be worse off as review informativeness increases

    An evaluation of unethical business practices in Australia's China inbound tourism market

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    This paper examines the prevalence of unethical practices within the business sector operating in the China to Australia tourism market. The range and nature of the practices is outlined in the context of the structure of outbound operations in China and inbound operations in Australia, taking account of the roles of the respective governments. The prospective impact of the practices on the growth of the market is evaluated. An estimation is provided of the potentially negative impacts of word-of-mouth recommendations on future China to Australia tourism flows

    Competition in online comparison shopping services

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    Home Value Protection: Final Report

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    The following report provides an overview of a Home Value Protection (HVP) product to evaluate the practicality of making such a program more widely available and provide background for anyone considering such a plan. The paper is based largely on the Home Value Protection product established in Syracuse New York in 2002, and a number of the authors of this paper participated in the establishment of the Syracuse Home Value Protection program.The paper contains four sections:1: Investor OutreachThis section provides background information about the Syracuse program, the current and potential participants and what roles they might play, a review of a few of the ways such a program could be implemented, and links to various media coverage.2: Index ResearchThe Syracuse program measured changes in house values by a real estate index for the area (rather than individual house sale price), and this section evaluates a number of different index methods using four markets historical data to see how well the different indexes would have performed with a HVP product (had it been available).3: Capital Requirements & PricingThis section provides a model for estimating the pricing requirements and capital required for a program across multiple markets. While not exhaustive, this approach will provide a useful reference and starting point for anyone evaluating investment in such a program.4: Regulatory EnvironmentThis section provides information on some of the regulatory entities across the markets used in the analysis. Due to the variations in the way a HVP product could be implemented, regulations could apply in a variety of ways and this section can only offer a starting point for potential investors or participants

    The economics and business models of prescription in the Internet

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    L'économie de l'Internet a contribué à une ouverture du jeu concurrentiel en dissociant les fonctions physique et informationnelle des activités de distribution. Plus précisément, elle a ouvert la voie à de nouvelles structures de marché en mettant en avant une fonction de prescription clairement distincte des fonctions d'offre d'une part, des fonctions logistiques et de mise à disposition des biens d'autre part. Nous nous attachons ici à montrer que l'analyse des fonctions et modalités de prescription permet de mieux comprendre les modèles d'affaires et les structures concurrentielles à l'œuvre dans l'économie de l'Internet organisées autour de l'articulationde trois marchés : biens primaires, référencement, prescription. Cette modélisation de marchés à prescription contribue à enrichir la compréhension des chaînes de valeur et des relations d'affaires repérables dans l'Internet.prescription;internet

    The Unresolved Tension Between Trademark Protection and Free Movement of Goods in the European Community

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    Developments in computer-aided engineering and the rapid growth of computational power have made simulation-driven process and product development efficient and useful since it enables detailed evaluation of product designs and their manufacturing processes. In the context of a sheet metal component, it is vital to predict possible failure both during its forming process and its subsequent usage. Accurate numerical models are needed in order to obtain trustworthy simulation results. Furthermore, the increasing demands imposed on improved weight-to-performance ratio for many products endorse the use of high-strength steels. These steels often show anisotropic behaviour and more complex hardening and fracturing compared to conventional steels. Consequently, demand for research on material and failure models suitable for these steels has increased. In this work, the mechanical and fracture behaviour of two high-strength steels, Docol 600DP and Docol 1200M, have been studied under various deformation processes. Experimental results have been used both for material characterisation and for calibration of fracture criteria. One major requirement as concerns the fracture criteria studied is that they should be simple to apply in industrial applications, i.e. it should be possible to easily calibrate the fracture criteria in simple mechanical experiments and they should be efficient and accurate. Consequently, un-coupled phenomenological damage models have been the main focus throughout this work. Detailed finite element models including accurate constitutive laws have be used to predict and capture material instabilities. Most of the fracture criteria studied are modifications of the plastic work to fracture. Ductile tensile and ductile shear types of fracture are of particular interest in sheet metal applications. For these fractures the modification of the plastic work relates to void coalescence and void collapse, respectively. Anisotropy in fracture behaviour can be captured by the introduction of a material directional function. The dissertation consists of two parts. The first part contains theory and background. The second consists of five papers

    The Role of the Mangement Sciences in Research on Personalization

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    We present a review of research studies that deal with personalization. We synthesize current knowledge about these areas, and identify issues that we envision will be of interest to researchers working in the management sciences. We take an interdisciplinary approach that spans the areas of economics, marketing, information technology, and operations. We present an overarching framework for personalization that allows us to identify key players in the personalization process, as well as, the key stages of personalization. The framework enables us to examine the strategic role of personalization in the interactions between a firm and other key players in the firm's value system. We review extant literature in the strategic behavior of firms, and discuss opportunities for analytical and empirical research in this regard. Next, we examine how a firm can learn a customer's preferences, which is one of the key components of the personalization process. We use a utility-based approach to formalize such preference functions, and to understand how these preference functions could be learnt based on a customer's interactions with a firm. We identify well-established techniques in management sciences that can be gainfully employed in future research on personalization.CRM, Persoanlization, Marketing, e-commerce,

    Differential Pricing for Pharmaceuticals: Reconciling Access, R&D and Patents

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    This paper reviews the economic case for patents and the potential for differential pricing to increase affordability of on-patent drugs in developing countries while preserving incentives for innovation. Differential pricing, based on Ramsey pricing principles, is the second best efficient way of paying for the global joint costs of pharmaceutical R&D. Assuming demand elasticities are related to income, it would also be consistent with standard norms of equity. To achieve appropriate and sustainable price differences will require either that higher-income countries forego trying to "import" low drug prices from low-income countries, through parallel trade and external referencing, or that such practices become less feasible. The most promising approach that would prevent both parallel trade and external referencing is for payers/purchasers on behalf of developing countries to negotiate contracts with companies that include confidential rebates. With confidential rebates, final transactions prices to purchasers can differ across markets while manufacturers sell to distributors at uniform prices, thus eliminating opportunities for parallel trade and external referencing. The option of compulsory licensing of patented products to generic manufacturers may be important if they truly have lower production costs or originators charge prices above marginal cost, despite market separation. However, given the risks inherent in compulsory licensing, it seems best to first try the approach of strengthening market separation, to enable originator firms to maintain differential pricing. With assured market separation, originators may offer prices comparable to the prices that a local generic firm would charge, which eliminates the need for compulsory licensing. Differential pricing could go a long way to improve LDC access to drugs that have a high income market. However, other subsidy mechanisms will be needed to promote R&D for drugs that have no high income market.
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