Download e-book for kindle: Advances in the Economics of Information Systems by Kerem Tomak

By Kerem Tomak

ISBN-10: 1591404444

ISBN-13: 9781591404446

ISBN-10: 1591404452

ISBN-13: 9781591404453

ISBN-10: 1591404460

ISBN-13: 9781591404460

Advances within the Economics of data platforms presents a large standpoint at the matters on the topic of purposes of economics to info structures quarter. From grid computing to on-line auctions, the reader can locate novel makes use of of economics instruments in realizing thoughts concerning using know-how on the enterprise point. IT pros also will locate wealthy research of difficulties at their schedule and enjoy the insights this reference box offers.

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Extra info for Advances in the Economics of Information Systems

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By introducing these new concepts, we point out the possibility that the transparency of cost information can be either beneficial or detrimental to consumers and producers. This highlights one of the differences of our model from the literature. Copyright © 2005, Idea Group Inc. Copying or distributing in print or electronic forms without written permission of Idea Group Inc. is prohibited. 38 Zhu Thus this chapter provides a theoretical interpretation about the informational effects of B2B exchanges.

Transparent information is typically regarded as a good thing due to possible efficiencies arising from more widespread dissemination of accurate information. Yet, “to have a full collaborative environment is a hard sell for me … what I am going to lose in terms of visibility and exposing my information to potential competitors is greater than what I would gain on the collaboration side” (Meehan, 2001). Indeed, are B2B exchanges likely to promote efficiency and yield social welfare benefits, or are they more likely to be used to squeeze margins and impose price pressure on small suppliers?

First, receiving more accurate information permits the firms to choose the strategies that are more finely tuned to the actual state of the market and hence improve the profits, so the increased transparency of information for a firm has a positive effect. On the other hand, transparent information may affect the degree of correlation among the strategies of all other firms. The increased strategy correlation and the increased precision of the rivals have a rather subtle, complicated effect on the behavior of the firms.

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Advances in the Economics of Information Systems by Kerem Tomak


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