Competitive DER Aggregation for Participation in Wholesale Markets

2023 | HICSS | Citations: 0

Authors: Chen, C.; Alahmed, A.; Mount, T.; Tong, L.

Abstract: The problem of the large-scale aggregation of behind-the-meter demand and gener ... Expand

Abstract: The problem of the large-scale aggregation of behind-the-meter demand and generation resources by a distributed-energy-resource aggregator (DERA) is considered. As a wholesale market participant, a DERA maximizes its profit while providing competitive services to its customers with higher consumer/prosumer surpluses than those offered by the distribution utilities or community choice aggregations.A constrained profit maximization program for aggregating behind-the-meter generation and consumption resources is formulated, from which payment functions for the behind-the-meter consumptions and generations are derived.Also obtained are DERA's bid and offer curves for its participation in the wholesale energy market. Collapse

Topics: price management competitive advantage

Methods: simulation case study

Competing on price and guarantee compensation: Heeding cloud consumer's quality perception

2023 | Information & Management | Citations: 0

Authors: Chen, Fuzan; Lu, Aijun; Wu, Harris; Li, Minqiang; Feng, Haiyang

Abstract: As frequent service failures raise user concerns, guarantee compensation has bec ... Expand

Abstract: As frequent service failures raise user concerns, guarantee compensation has become a competitive instrument for cloud service providers (CSPs) in addition to price. This study proposes a game-theoretical model where two CSPs compete on both price and compensation. We consider two roles of compensation: (1) remedying user losses and (2) helping users to form quality perception. The results indicate that the higher-quality CSP should always guarantee higher compensation but may not always charge a higher price. We further investigate the signaling policies and find that the lower-quality CSP is more likely to signal a higher-than-actual quality. Collapse

Topics: IS economics consumer surplus service quality cloud computing privacy

Methods: game theoretical model optimization model cross sectional research theory development experiment

Theories: game theory

How smart technology empowers consumers in smart retail stores? The perspective of technology readiness and situational factors

2023 | Electronic Markets | Citations: 0

Authors: Chen, Jiahe; Chang, Yu-Wei

Abstract: Smart retail stores have been gaining momentum in smart retailing. Instead of re ... Expand

Abstract: Smart retail stores have been gaining momentum in smart retailing. Instead of relying on in-store staff like traditional counterparts, smart retail stores provide an unmanned environment purely enabled by various in-store smart technologies that support customers throughout the shopping journey. This unstaffed operating model also enables smart retail stores to provide competitive prices by reducing labor costs. However, studies have overemphasized the unique value offered by smart technology but discounted the common value strengthened in smart retail. This study applies the situational factor framework to identify both unique and common factors empowered by smart technology from a comprehensive perspective; then, technology readiness is incorporated to explore consumer purchase intentions in smart retail stores. A total of 283 survey data were collected and analyzed. The main results indicate that most situational factors have a direct effect on purchase intention, and technology readiness enhances the unique situational factors enabled directly by smart technology. Collapse

Topics: business model innovation management price management accounting

Methods: survey structural equation modeling statistical power analysis partial least squares regression partial least squares path modeling

Conversation Analytics: Can Machines Read between the Lines in Real-Time Strategic Conversations?

2023 | HICSS | Citations: 0

Authors: Chen, Y.; Rui, H.; Whinston, A.

Abstract: Strategic conversations involve one party with an informational advantage and t ... Expand

Abstract: Strategic conversations involve one party with an informational advantage and the other with an interest in the information. This paper proposes machinelearning based measures to quantify the degrees of evasiveness and incoherence of the informed party during real-time strategic conversations. The specific empirical context is the questions and answers (Q&A) part of earnings conference calls during which managers endure high pressure as they face analysts' scrutinizing questions. Being reluctant to disclose adverse information, managers may resort to evasive answers and sometimes respond less coherently due to increased cognitive load. Using data from the earnings calls of the S&P 500 companies from 2006 to 2018, we show that the proposed measures predict worse nextquarter earnings. Moreover, the stock market perceives incoherence as a negative signal. This paper contributes methodologically by developing two novel machinepowered measures to automatically evaluate behavioral cues during real-time strategic conversations. The proposed analytical tools are particularly beneficial to resource-constrained and informationally disadvantaged parties such as retail investors who may not be able to effectively trade on signals buried deep in unstructured conversational data. Collapse

Topics: database system artificial intelligence electronic finance missing data accounting

Methods: computational algorithm BERT deep learning machine learning next sentence prediction

Theories: theory of economic growth

Impact of Own Brand Product Introduction on Optimal Pricing Models for Platform and Incumbent Sellers

2023 | Information Systems Research | Citations: 0

Authors: Cheng, Hsing Kenneth; Jung, Kyung Sung; Kwark, Young; Pu, Jingchuan

Abstract: Sales on the e-commerce platform in the United States have experienced explosive ... Expand

Abstract: Sales on the e-commerce platform in the United States have experienced explosive growth and are projected to surpass $740 billion in 2023. The expansion of the platform’s traditional role as a reseller into an online marketplace and the introduction of its own brand products have stoked a huge fear among the incumbent sellers. The platform’s unfair anticompetitive practice further aggravates the situation. Consequently, politicians and regulators have proposed prohibiting platforms from introducing own brand products to protect the incumbent sellers. This study addresses two questions of critical interest to both the policymakers and the incumbent sellers. First, how does the platform’s introducing its own brand product affect the incumbent sellers? Second, how effective is the proposed policy in terms of protecting the incumbent sellers? We examine the impact of the platform’s own brand introduction on the incumbent sellers under two prevailing sell-on and sell-to pricing contracts. We find that the proposed legislation “that prohibits platforms from both offering a marketplace for commerce and participating in that marketplace” does not have the desired outcome of helping the incumbent sellers. Instead, it forces the platform to adopt only the sell-to contract with the own brand introduction that hurts the sellers under most market conditions. Interestingly, when the own brand introduction is banned under the sell-to contract, the incumbent sellers can be better off because the platform’s strategic reaction to the enforcement can lead to the best scenario for the incumbent sellers. If the ban is imposed on both the sell-on and sell-to contracts, the platform’s best response is to add another new brand competing with the incumbent sellers, which can also help the incumbent sellers, however, not as much as in the case of the enforcement only under the sell-to contract. History: Ram Gopal, Senior Editor; Hong Xu, Associate Editor. Supplemental Material: The online appendices are available at https://doi.org/10.1287/isre.2022.1175. Collapse

Topics: price management electronic commerce duopoly competitive advantage marketing management

Methods: cross sectional research

Theories: game theory

The Cost of Free: The Effects of “Wait-for-Free” Pricing Schemes on the Monetization of Serialized Digital Content

2023 | Management Information Systems Quarterly | Citations: 0

Authors: Choi, Angela; Rhee, Ki-Eun; Yoon, Chamna; Oh, Wonseok

Abstract: Leveraging a combination of analytical frameworks and empirical assessments, th ... Expand

Abstract: Leveraging a combination of analytical frameworks and empirical assessments, this study investigates the effects of wait-for-free (WFF) pricing schemes on the monetization of serialized, digital entertainment content, which has become increasingly pervasive on online platforms. WFF pricing is a strategy in which consumers are given the option to either wait a certain amount of time to acquire digital content at no cost or pay to consume it immediately. We evaluate the extent to which habit formation and presentbiased preferences driven by the consumption of addictive stock affect individual consumers' willingness to wait (or pay) for content, which, in turn, determines the efficacy of WFF pricing. We also examine the conditions under which consumers switch from waiting for free content to instantaneously purchasing content. Our findings indicate that WFF pricing increases the sales of serialized digital content, generating new demand from customers who would otherwise forgo participation in the market. In addition, the pricing design effectively generates sustained profits in the long run. We found that most consumers who initiate a purchase either upon initial market entry or upon switching continue to purchase as new episodes become available. Moreover, the results indicate that as a user accumulates free episodes of a specific series, given extended waiting periods, the likelihood of their conversion from a wait-for-free customer to an instant-purchase customer increases. In particular, WFF pricing effectively augments the willingness to pay of low-valuation consumers as habit formation builds up through time with the free consumption of serialized content. One free episode can elevate the likelihood of consumer purchase by up to 13%. However, as the number of free episodes consumed goes beyond a threshold, the likelihood of conversion decreases. We conclude with a discussion of managerial implications that can help content providers monetize their serialized digital content products. Collapse

Topics: price management consumer behavior advertising management digital good customer satisfaction

Methods: mathematical model robustness check econometric modeling proportional hazards model survival analysis

Theories: behavioral economics

An Empirical Study of Information Technology Capabilities to Enable Value Chain Activities and Interfaces

2023 | Information Systems Frontiers | Citations: 0

Authors: Chou, Yen-Chun; Shao, Benjamin B. M.

Abstract: Information technology (IT) is a critical resource and asset for a firm’s intern ... Expand

Abstract: Information technology (IT) is a critical resource and asset for a firm’s internal operations and external interactions with outside stakeholders. This paper explores IT capabilities that enable a retailer’s value chain activities and interfaces with suppliers and customers. IT capabilities that enable the value chain activities of logistics and operations as well as those of marketing and sales are identified to examine how they influence a retailer’s implementation of value chain interfaces. Through the lens of organizational information processing theory (OIPT), we find that both IT capabilities and IT infrastructure play a pivotal role in implementing value chain interfaces but in distinctive ways. On the supplier-facing side, a retailer’s IT infrastructure and IT capabilities enabling logistics and operations are essential to its vendor-managed inventory (VMI) system. On the customer-facing side, a retailer’s e-commerce website requires IT infrastructure and IT capabilities that enable marketing and sales. Moreover, synergies are found downstream for e-commerce website that benefits from the integration of IT infrastructure and IT capabilities enabling logistics and operations while such synergies are not found upstream for VMI. This partial complementary effect is explicated by the sequential asymmetric information dependency of value chain activities. Finally, we discuss the implications of our findings for the research and practice of IT enablement and integration. Collapse

Topics: information technology capability electronic commerce website information technology infrastructure logistics management

Methods: survey chi squared test descriptive statistic econometric modeling regression analysis method

Theories: organizational information processing theory

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

Social Sharing, Public Perception, and Brand Competition in a Horizontally Differentiated Market

2023 | Information Systems Research | Citations: 0

Authors: Gu, Zheyin (Jane); Li, Xinxin

Abstract: We examine how social sharing of consumers’ brand purchases affects brand compet ... Expand

Abstract: We examine how social sharing of consumers’ brand purchases affects brand competition in a market where different types of consumers, characterized by their distinct personal characteristics (i.e., personalities, hobbies, and lifestyles) and brand preferences (i.e., being loyal to one of two horizontally differentiated brands or neither), all desire accurate public perception of their true type. Social sharing of a consumer’s brand purchase allows the public to infer the consumer’s type, but such inference can be mistaken if a brand is purchased by multiple types of consumers. A consumer receives a higher public-perception utility from purchasing a brand if social sharing of the consumer’s purchase leads to a higher chance of accurate public perception. Our analysis shows that social sharing enhances the profit of the advantaged brand that attracts a larger size of loyal consumers but can hurt the profit of the disadvantaged brand that attracts a smaller size of loyal consumers. That is, in a horizontally differentiated market, social sharing may further strengthen the competitive status of the advantaged brand. Interestingly, the disadvantaged brand may become more likely to suffer from social sharing if it follows the conventional wisdom to expand the loyal segment. When the public can learn a consumer’s true type from other information sources (e.g., the consumer’s online blog), social sharing of consumers’ brand purchases brings a smaller profit gain to the advantaged brand. The disadvantaged brand may be better off or worse off, depending on the size of its loyal segment. Our theoretical findings shed light on how brands can devise competitive strategies to leverage the power of social media.History: Michael Zhang, Senior Editor; Hong Xu, Associate Editor.Supplemental Material: The online appendix is available at https://doi.org/10.1287/isre.2022.1132. Collapse

Topics: social media personality smartphone price management willingness to pay

Methods: survey

Preventive Care Now or Pay Later? A Personalized Medicine Approach for Healthcare Management

2023 | International Conference on Information Systems | Citations: 0

Authors: Guo, Tianjian; Bardhan, Indranil; Wen, Wen

Abstract: ... Expand

Abstract: Collapse

Topics: health information system mobile system information exchange Python price management

Methods: simulation reinforcement learning Markov decision process PyTorch deep learning