Hotelling competition with multi-purchasing

We analyze a Hotelling model where consumers either buy one out of two goods (single-purchase) or both (multi-purchase). The firms’ pricing strategies turn out to be fundamentally different if some consumers multi-purchase compared to if all single-purchase. Prices are strategic complements under single-purchase, and increase with quality. In a multi-purchase regime, in contrast, prices are strategically independent because firms then act monopolistically by pricing the incremental benefit to marginal consumers. Furthermore, prices can decrease with quality due to overlapping characteristics. Higher preference heterogeneity increases prices and profits in equilibrium with single-purchase, but decreases them with multi-purchase.Multi-purchase; incremental pricing; content competition

Hotelling Competition with Multi-Purchasing: Time Magazine, Newsweek, or both?

Equilibrium prices behave quite differently if consumers single-purchase (buy either Time Magazine or Newsweek) or if some consumers multi-purchase (buy both). Prices are strategic complements under single-purchase, and increase with magazine quality. In a multi-purchase regime prices are strategically independent because firms then act monopolistically by pricing the incremental benefit to marginal consumers. Furthermore, prices can decrease with magazine quality due to overlapping content. Higher preference heterogeneity increases prices and profits in equilibrium with single-purchase, but decreases them with multi-purchase. We determine when each regime holds, and present a detailed reaction function analysis which applies more generally to duopoly pricing.magazine competition, multi-purchase, incremental pricing, content competition

Media Market Concentration, Advertising Levels, and Ad Prices

Standard media economics models imply that increased platform competition decreases ad levels and that mergers reduce per-viewer ad prices. The empirical evidence, however, is mixed. We attribute the theoretical predictions to the combined assumptions that there is no advertising congestion and that viewers single-home. Allowing for crowding in viewer attention spans for ads may reverse standard results, as does allowing viewers to multi-home.media economics, pricing ads, advertising clutter, information congestion, mergers, entry

Media market concentration, advertising levels, and ad prices.

Standard media economics models imply that increased platform competition decreases ad levels and that mergers reduce per-viewer ad prices. The empirical evidence, however, is mixed. We attribute the theoretical predictions to the combined assumptions that there is no advertising congestion and that viewers single-home. Allowing for crowding in viewer attention spans for ads may reverse standard results, as does allowing viewers to multi-home.Media economics; pricing ads; advertising clutter; information congestion; mergers; entry.

Design of a test environment for planning and interaction with virtual production processes

Rising complexity of systems combined with multi-disciplinary development and manufacturing processes necessitates new approaches of early validation of intermediate digital process and system prototypes. To develop and test these approaches, the modular digital cube test center was build. Usage of different Visualization Modules such as Powerwall, CAVE or Head Mounted Display allows immersive interaction with the prototypes. Combined with Haptic Interaction Modules from one axis assembly device to a hexapod simulator up to a full freedom kinematic portal and usage of different simulation modules of vehicle design, multi-kinematic, manufacturing and process-simulation allows early virtual prototypes validation in multiple use cases

Hybrid Simulators for Product Service-Systems : Innovation potential demonstrated on urban bike mobility

One major goal of the Rethinking Prototyping project is to bring scientists from different domains like engineering and arts to explore collaboratively new approaches of development and testing of Product Service Systems (PSS). PSS combine products, services, and infrastructure to fulfil individual customer needs. Therefore, the development of PSS is an extension of traditional engineering design process, which mainly refers to purely tangible products or intangible services into an integrated development process of products and services. The basis is a new technology called Smart Hybrid Prototyping (SHP), a joint development by Fraunhofer IPK and the TU Berlin. SHP is an innovative technology for a multimodal interdisciplinary evaluation of virtual prototypes in early development stages. It is based upon methods of Mixed Reality extended by modern industrial technologies to allow natural interaction with virtual prototypes of mechanical or mechatronic systems. It serves as a bridge between physical reality and digital virtuality. The use cases in this paper are based on urban bike mobility. Therefore, three concepts have been worked out to specify main requirements for an urban hybrid bike simulator. The first use case is from the perspective of a bicycle rental, where rental services for the users can be developed, validated, and optimized. The second use case provides the integration of mobile devices like smartphones and tablets for the development and validation of mobile services for bicyclists. The third use case is oriented on development and validation of new bicycles and urban mobility concepts like e-bikes, pedelecs, tripelecs and sharing services. Based on these generic use cases the requirements on a hybrid bicycle simulator were derived. Why a bicycle simulator? Well, we are firmly convinced that the future of urban mobility is determined from trends such as ecological rethinking and the desire for sports and healthy life. Furthermore, it is one of the most competitive and agile markets using most innovative materials and manufacturing technologies

Hotelling competition with multi-purchasing : time magazine, newsweek, or both?

Equilibrium prices behave quite differently if consumers single-purchase (buy either Time Magazine or Newsweek) or if some consumers multi-purchase (buy both). Prices are strategic complements under single-purchase, and increase with magazine quality. In a multi-purchase regime prices are strategically independent because firms then act monopolistically by pricing the incremental benefit to marginal consumers. Furthermore, prices can decrease with magazine quality due to overlapping content. Higher preference heterogeneity increases prices and profits in equilibrium with single-purchase, but decreases them with multi-purchase. We determine when each regime holds, and present a detailed reaction function analysis which applies more generally to duopoly pricing

SHPbench – a smart hybrid prototyping based environment for early testing, verification and (user based) validation of advanced driver assistant systems of cars

Statistical analysis show that more than 90 percent of all car accidents result from human mistakes. Advanced Driver Assistant Systems (ADAS) are intended to support and assist the car driver, and therefore contribute significantly to the reduction of accidents. ADAS become more and more complex and demanding regarding hard- and software fulfilling the requirements applied onto assistant systems nowadays and in the future. They have to be considered as multi-functional multi-domain mechatronic systems. Smart Hybrid Prototyping (SHP) is a by now proven approach for handling ADAS’ demands during and to the development process, specifically for early integrated component and system testing, its verification and validation with the focus on the interaction with the driver can only be reasonably and economically met by utilizing the SHP technology. For those mentioned purposes the SHPbench, an integrated development and validation environment, has been recently developed. The SHPbench's architecture and specification is presented and evaluated by applying a representative use case of an ADAS development process. This paper documents the use case setup, process steps and test results