Indirect Network Effects in New Product Growth

Indirect network effects are of prime interest to marketers because they affect the growth and takeoff of software availability for, and hardware sales of, a new product. While prior work on indirect network effects in the economics and marketing literature is valuable, these literatures show two main shortcomings. First, empirical analysis of indirect network effects is rare. Second, in contrast to the importance the prior literature credits to the chicken-and-egg paradox in these markets, the temporal pattern – which leads which? – of indirect network effects remains unstudied. Based on empirical evidence of nine markets, this study shows, among others, that: (1) indirect network effects, as commonly operationalized by prior literature, are weaker than expected from prior literature; (2) in most markets we examined, hardware sales leads software availability, while the reverse almost never happens, contradicting existing beliefs. These findings are supported by multiple methods, such as takeoff and time series analyses, and fit with the histories of the markets we studied. The findings have important implications for academia, public policy and management practice. To academia, it identifies a need for new, and more relevant, conceptualizations of indirect network effects. To public policy, it questions the need for intervention in network markets. To management practice, it downplays the importance of the availability of a large library of software for hardware technology to be successful.Chicken-and-Egg;New Product Growth;Indirect Network Effects;Takeoff

Integrated Online Media Management Systems For Media Centers: A Model For Selection And Effective Use

The researcher proposed to advice in the selection of an Integrated Online Library System (IOLS) for use in the 103 school media centers in the Palm Beach County Schools, Florida. This was accomplished by evaluating the two finalists of those vendors who answered the district\u27s Request for Proposal (RFP). Of the five vendors who responded to the RFP. CLSI and SIRSI were selected as the systems most likely to meet the needs of the media centers of the school district. An overview and definition of IOLS was first discussed. This overview then related itself to the needs of the school district as presented in the RFP. A selection criteria was then designed from previous research on the subject to help find the ideal system. The history and development of an Integrated Online Library System was important in seeing where the systems have originated in contrast to the systems in the Eighties to the also revealed the present time. Literature IOLS principles of operation. The Request for Proposal reflected the needs assessment discussed over several years of committee meetings of representatives from various schools. The committees explored IOLS automated options and compared these options. The RFP outlined the system requirements. Thoughts on staff attitudes while planning for a system were also considered. Each system was evaluated with the criteria outlined in the RFP. The background and capabilities of both systems were explored. This exploration took place where by the benchmark tests, on-site demonstrations systems were in use daily, conferences with the vendors, systems. And reading literature reviews on both systems. Evaluation guidelines and criteria were found in library resources. The functions required for terminal access requirements, process for data conversion, vendor background and reliability, contained in these library resources. And the cost were contained in these library resources. The results of this study culminated in the official recommendation of the SIRSI to be purchased by the district\u27s school board. It was the expectation of the author of this document to see the purchase of the recommended system by the school board and have it implemented in all the schools in the district within a three year period following the submission of the recommendation

An econometric analysis of the desktop computer hardware market

The purpose of this study was to compare six competing econometric models which depict the relationship between hardware characteristics and machine cost for the desktop computer market. The Box-Cox methodology and multiyear data were used to facilitate this comparison. The analysis validated that the Box-Cox methodology is a viable means for evaluating competing model formulations within the field of information systems research. The results were consistent with past research that suggested a double natural log model formulation for representing the functional relationships among variables when modeling machine cost as a function of hardware attributes. Further, the more complex power transformation model formulations suggested by the Box-Cox methodology did not significantly outperform the more traditional and simpler double natural log model. More specifically, the results indicated that variables related to primary memory and microchip tedinology have the largest impact on machine cost. Additionally, variables related to madiine connectivity, machine expandability, and year of observation were also found to be significant explanatory variables for machine cost

Sectoral Leadership in International Competitiveness

The purpose of this paper is to identify the type of labour and the sectors where labour productivity should be improved to raise the international competitiveness of Portugal. A static multi-sectoral general equilibrium model, with multi-national and single-country versions is used. The model allows the identification of the sectors that are leaders in competitiveness improvement. It is expectable that for some countries this role should be played by the traditional exporting-sectors, while for other countries the effort should be concentrated on the suppliers of intermediate goods. The results show that the choice of sector, and type of labour are crucial for the improvement of the international competitiveness of the Portuguese economy. In addition, the criterion used to measure competitiveness also has an important role. While the multifactor productivity is especially increased when the promotion of labour competencies occurs in exporting-sectors and importing-sectors, the population welfare have a greater impact with the generalised improvement of unskilled labour competencies.General equilibrium models, competitiveness, productivity.

Incompatibility, Product Attributes and Consumer Welfare: Evidence from ATMs

Incompatibility in market with network effects reduces consumers? ability to ?mix and match? components offered by different sellers, but can also spur changes in product attributes that might beneÞt consumers. In this paper, we estimate the effects of incompatibility on consumers in a classic hardware/software market: ATM cards and machines. We Þnd that while ATM fees ceteris paribus reduce the network beneÞt from other banks? ATMs, a surge in ATM deployment accompanies the shift to surcharging. This is valuable to consumers and often completely offsets the harm from higher fees. The results suggest that policy discussions of incompatibility must consider not only its direct effect on consumers, but also its effect on product attributes.ATMs, incompatibility, compatibility, discrete choice, network effects, demand estimation

A Study Of Corporate Entrepreneurship And Firm Performance In The Computer Industry During Two Technological Disruptions

This study presents a model of firm performance for Corporate Entrepreneurship (CE) Entry-Growth–Exit strategies categorized by focus of entrepreneurship, CE domain, and CE form.  Over a longitudinal sample, this paper examines U.S. computer firm’s CE strategies and firm performance during two technological disruptions namely the introduction of personal computers and subsequently the internet.  This paper shows that computer companies had superior performance by implementing CE strategies of sustained regeneration and organizational rejuvenation during growth.  In addition, best performing companies survived the internet technological disruption by implementing the CE strategy of domain redefinition. This study concludes with recommendations for future research

Modelling indoor air carbon dioxide concentration using grey-box models

Predictive control is the strategy that has the greatest reported benefits when it is implemented in a building energy management system. Predictive control requires low-order models to assess different scenarios and determine which strategy should be implemented to achieve a good compromise between comfort, energy consumption and energy cost. Usually, a deterministic approach is used to create low-order models to estimate the indoor CO2 concentration using the differential equation of the tracer-gas mass balance. However, the use of stochastic differential equations based on the tracer-gas mass balance is not common. The objective of this paper is to assess the potential of creating predictive models for a specific room using for the first time a stochastic grey-box modelling approach to estimate future CO2 concentrations. First of all, a set of stochastic differential equations are defined. Then, the model parameters are estimated using a maximum likelihood method. Different models are defined, and tested using a set of statistical methods. The approach used combines physical knowledge and information embedded in the monitored data to identify a suitable parametrization for a simple model that is more accurate than commonly used deterministic approaches. As a consequence, predictive control can be easily implemented in energy management systems.Peer ReviewedPostprint (author's final draft

AN EVALUATION OF COST OF PRODUCTION INFORMATION USAGE BY COUNTY AGENTS

County agents receive cost of production information primarily from state extension services and then disseminate it to agricultural producers. A survey gathered data on agent usage of this information. A Poisson regression analysis using count data was performed to determine the factors influencing the number of times county agents directly referred to published cost of production (enterprise budget) information in a year. The agent's understanding of budget information use in management decisions, the availability of budgets, and his/her receiving the budgets in multiple forms (e.g., sheets, booklets, or software) had significant positive impacts on the use of budgets by the agent.Production Economics, Teaching/Communication/Extension/Profession,