How to react to a shock? Effects of Airbnb hosts’ choices and market segmentation at the time of Covid-19

2023 | Information & Management | Citations: 0

Authors: Buzzacchi, Luigi; Milone, Francesco Luigi; Paolucci, Emilio; Raguseo, Elisabetta

Abstract: We investigate the way service providers who operate on an online peer-to-peer ( ... Expand

Abstract: We investigate the way service providers who operate on an online peer-to-peer (P2P) platform readapted their marketing choices to face the Covid-19 pandemic. Through an empirical investigation on a large dataset of Airbnb properties in Rome, observed from January 2018 to December 2020, we provide a threefold contribution by investigating how Airbnb hosts reacted to the Covid-19 pandemic shock, in terms of marketing choices, such as price adjustments and flexible cancellation policies; the direct effects of these choices on their economic returns; and how service providers on Airbnb reacted to address the new needs of their customers during the Covid-19 pandemic. The findings provide useful insights for researchers and practitioners and show that the adoption of combined marketing choices led to more than proportional effects on performances as it allowed Airbnb hosts to exploit profitable market segmentation mechanisms. Collapse

Topics: pandemic Airbnb marketing management price management peer-to-peer model

Methods: econometric modeling descriptive statistic instrumental variables estimation robustness check longitudinal research

The Economic Implications of Privacy Dark Patterns (PDPs)

2023 | International Conference on Information Systems | Citations: 0

Authors: Chen, Dawei; Hahn, Jungpil

Abstract: This study investigates the economic implications of privacy dark patterns (PDP ... Expand

Abstract: This study investigates the economic implications of privacy dark patterns (PDPs) through which firms "wisely" play privacy games. It is believed that PDPs advantage firms by deceiving consumers. However, it could also hinder firms' credibility. Thus, we aim to examine whether PDPs always benefit firms and hurt consumers. We also seek to answer whether market forces are sufficient to keep PDPs at relatively low levels. Our results show that PDPs make users weakly worse off and the seller weakly better off. Nevertheless, the seller has incentives to not utilize any PDPs when users' privacy cost is high, and the ratio of privacy concern and search cost is either too high or too low under which market shrinkage effect dominates market division effect. Finally, we show that a welfare maximizing social planner would allow the presence of PDPs when users' privacy cost is sufficiently low. Collapse

Topics: privacy information privacy concern price management data breach IS economics

Methods: cross sectional research game theoretical model literature study

Theories: game theory

z-Commerce: Designing a Data-Minimizing One-Click Checkout Solution

2023 | DESRIST | Citations: 0

Authors: Ermolaev, Egor; Abellán Álvarez, Iván; Sedlmeir, Johannes; Fridgen, Gilbert

Abstract: E-commerce has grown rapidly over the past years, with prevailing e-commerce pla ... Expand

Abstract: E-commerce has grown rapidly over the past years, with prevailing e-commerce platforms aggregating large amounts of customer data. This practice has several undesirable side effects, such as facilitating profiling that may lead to price discrimination and data feedback loops that can hamper competition. Moreover, data hoarding carries security risks through data breaches and undermines customers’ privacy expectations. On the other hand, convenience aspects and compliance regulation demand the processing and storage of user-related data. To address this tension field, we aim to conceptualize and iteratively refine a data-minimizinig e-commerce platform. Following a design science research approach, we identify design objectives and propose and implement a solution in which stakeholders receive only customer data that is indispensable for their part of the process. Our solution leverages digital identity wallets and general-purpose zero-knowledge proofs (zk-SNARKs). We aim to perform a criteria-based evaluation to assess our artifact’s feasibility and fitness from an interdisciplinary perspective. With our results, we hope to illustrate that combining state-of-the-art cryptographic techniques and an emerging digital identity paradigm allows reaching the user experience of incumbent e-commerce platforms while mitigating the undesirable socio-economic side effects of avoidable data disclosure. Collapse

Topics: electronic commerce privacy user experience open source price discrimination

Methods: qualitative interview design artifact design science literature study business process modeling

Designing Digital Platforms: A Synthetization of Relevant Design Topics for Business Models from a Literature Review

2023 | HICSS | Citations: 0

Authors: Goertler, Thomas; Papert, Marcel; Schmidt, Malou

Abstract: Digital platforms (DPs) represent a challenging research object. In this context ... Expand

Abstract: Digital platforms (DPs) represent a challenging research object. In this context, scientific literature has produced a large number of publications studying DPs. Given the importance of designing DPs in both academia and practice, the purpose of this study is to synthesize the current research findings on DPs and provide a framework with possible design topics under consideration from a business model perspective. A systematic literature review (SLR) was conducted to identify and synthesize the relevant findings. We analyzed 22 publications published before May 2021. The analysis shows that, in terms of "Value Propositions", most design topics were identified. In contrast, only one design topic was identified for "Customer Relationships", "Customer Segments", and "Cost Structure". In sum, our results present a framework with design topics for DPs and support the alignment of further research. Practitioners receive an overview of design topics for DPs that encourage today`s digital transformation projects. Collapse

Topics: price management business model value creation database system information system use

Methods: synthesis literature study design framework structured literature research literature sample

Brick-and-mortar retailer’s competitive strategy with consumer information under showrooming

2023 | Decision Support Systems | Citations: 0

Authors: Hsieh, Chung-Chi; Lathifah, Artya

Abstract: We study a brick-and-mortar (B&M) retailer competing with an online retailer in ... Expand

Abstract: We study a brick-and-mortar (B&M) retailer competing with an online retailer in the same product category under showrooming conditions. Showrooming takes place when consumers visit the B&M retailer to resolve product fit uncertainty first and then buy the best-fit products at the online retailer. In terms of mitigating the showrooming effect, we examine a promotion strategy with which the B&M retailer acquires consumer information from data brokers and makes a promotional offering to a targeted segment of traceable consumers, and investigate how the B&M retailer can benefit from this promotion strategy via a two-stage game-theoretical framework. We show that there is a threshold for the number of traceable consumers above which the promotion strategy begins to benefit the B&M retailer. When in the B&M retailer’s best interest, there exist two equilibria: one in which some traceable consumers showroom and the other in which no traceable consumers showroom. Less showrooming always takes place in the former equilibrium but more showrooming could occur in the latter equilibrium, as compared to the non-promotion strategy. Furthermore, a higher level of product fit uncertainty increases the B&M retailer’s demand and profit while inducing more showrooming in the latter equilibrium. Thus, showrooming driven by product fit uncertainty could leave the B&M retailer better off under the promotion strategy. Collapse

Topics: electronic commerce price discrimination virtual private network price management consumer behavior

Methods: digital trace data survey

Theories: game theory

Dark Sides of the Platform Economy: Market Power and Its Abuse by Platform Orchestrators

2023 | European Conference On Information Systems | Citations: 0

Authors: Kölbel, Tobias; Kunz, Daniel; Lamberty, Ricky

Abstract: Platforms drive the 21st century with orchestrating gatekeepers dominating the ... Expand

Abstract: Platforms drive the 21st century with orchestrating gatekeepers dominating the digital economy. Simultaneously, IT policymakers are increasingly concerned with antitrust regulation in the digital realm, abuse of market power, and monopolization cases against the most prominent digital platforms. This paper contributes to this ongoing debate by presenting the Platform Power Abuse Taxonomy. We provide an overview of abusive behaviors, considering the market position of platform orchestrators and differentiating platform types and affected market participants. Adopting a cross-platform approach, we rigorously analyze orchestrators' abuse vehicles and abuse tools to exploit their dominant position by incorporating findings from literature and real-world contexts. Collapse

Topics: electronic market digital platform price management legal context user interface

Methods: literature study literature sample case study qualitative interview structured literature research

Theories: lemon market theory

Jailbreaking in closed two-sided platforms

2023 | Information & Management | Citations: 0

Authors: Liu, Yunhao; Feng, Gengzhong; Sun, Yangyang; Kong, Xiangyin

Abstract: Jailbreaking, which refers to security-cracking behavior targeted at systems, th ... Expand

Abstract: Jailbreaking, which refers to security-cracking behavior targeted at systems, threatens closed two-sided plat­ forms. By allowing customers to access unauthorised content freely, jailbreaking may hurt developers’ enthu­ siasm and have complicated influences on the platform’s profit. We develop an analytical model to investigate jailbreaking’s influence on closed platforms. The findings reveal that platforms will tolerate jailbreaking only when the customers’ utility suffers a slight decline after jailbreaking. We also prove that jailbreaking hurts the closed platform’s profit. However, when bringing adequate additional benefits for customers beyond free con­ tent, jailbreaking can raise the platform’s profit. Our results are qualitatively tested in several scenarios. Collapse

Topics: network effect price management closed platform decision making price discrimination

Methods: experiment mathematical model optimization model reinforcement learning theoretical contribution

The Competition Effect of Decentralized Platforms: An Analytical Model

2023 | International Conference on Information Systems | Citations: 0

Authors: Napirata, Stefan; Sedlmeir, Johannes; Rieger, Alexander; Fridgen, Gilbert; Zimmermann, Steffen

Abstract: Envelopment angst and concerns about the exploitative appropriation of data net ... Expand

Abstract: Envelopment angst and concerns about the exploitative appropriation of data network effects can lead to fragmented platform markets. In this paper, we investigate if this fragmentation can be mended with decentralized platform architectures. Abstracting from an exemplary case in the mobility-as-a-service sector, we model a competitive two-platform market with a centralized platform and decentralized alternative. We find that in markets with high envelopment costs, the co-existence of these platforms leads to market segmentation: Complementors with low market power join the centralized platform, while complementors with high market power join the decentralized platform. Furthermore, the existence of a decentralized alternative can increase welfare. Lastly, by considering data control aspects, we demonstrate the effect of favorable platform design on complementor decision-making. Collapse

Topics: network effect digital platform decision making price discrimination value creation

Methods: mathematical model qualitative interview descriptive statistic literature study

An Economic Analysis of Subscription Sharing of Digital Services

2023 | International Conference on Information Systems | Citations: 0

Authors: Wu, Xiaokun; Wu, Shin-yi; Zhang, Zhongju

Abstract: Subscription sharing, where one shares her premium digital services subscriptio ... Expand

Abstract: Subscription sharing, where one shares her premium digital services subscription with other users, has become common due to subscription-sharing platforms like Togetherprice, Gowd, and Sharesub. This raises a question: Does it still make economic sense to offer a menu of subscription plans (e.g., an individual plan as well as a discounted family plan)? In this study, we look at a monopolist service provider that offers both plans but faces the potential threat of subscription sharing. We analyze the optimal prices and the impact of sharing on profit, customer surplus, and overall society benefits. Our results indicate that even with subscription sharing, offering both plans is at least as profitable as only offering individual plans. Under certain conditions, subscription sharing can even boost profits. Furthermore, our numerical analysis suggests that subscription sharing can benefit society. These findings suggest that subscription sharing is not necessarily as troublesome as one would have expected. Collapse

Topics: IS economics consumer surplus economic surplus price management price discrimination

Methods: economic model mathematical model

Answer Viewing Design on Paid Q&A Platforms

2022 | International Conference on Information Systems | Citations: 0

Authors: Gao, Yi; Mehra, Amit; Liu, Dengpan

Abstract: The low-participation problem has long been a challenge facing many paid Q&A pl ... Expand

Abstract: The low-participation problem has long been a challenge facing many paid Q&A platforms. Recently, a new business model wherein users, in addition to raising a question and receiving a personalized answer, can pay a small amount of fees to view a non-personalized answer to a question asked by others, has drawn considerable public attention and is considered an effective means to tackling such a challenge. In this paper, we build a theoretical model to explore whether this new business model benefits the key stakeholders (Q&A platform, answerers, and users). We find that the platform is not always better off when the answer-viewing feature is introduced. Another interesting finding is that while answerers may engage in direct competition with the platform, they can sometimes be better off. Additionally, we find that although having a new way to participate in the platform, users may sometimes be worse off under the answer-viewing feature. Collapse

Topics: price management consumer surplus IS economics business model user requirement

Methods: theoretical contribution optimization model theory development design methodology

Theories: game theory