Registration and Billing
-Zip code information is an automatic requirement for mail-based subscriptions. These numbers convey
a lot of information about the customer which makes it easy for a publication to describe the
demographics of their subscribers t
Global Electronic Markets Final Exam
Read and discuss each of the following news items in the context of concepts and models we have
examined in the course this semester. Focus particularly on which aspects of the articles are releva
Problem Set 1
Consider a simple monopoly market in which the dominant rm faces a
demand curve given by
where q is the quantity demanded of the good and p is its price and the parameter
" > 0. The rms cost function is
C (q) = F
so that all costs are
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Problem Set 4
1. The following diagram shows the standard deviations and correlation coefficients for a set of
seven common stocks.
-Information is like an oyster: it usually has the greatest value when it is fresh.
-The fact that your information customers want the latest information means they will pay more for
-Delay is a tried and true tactic for companies
-Whether fending off legal attacks or using the antitrust laws to challenge the conduct of competitors or
suppliers, every manager in the network economy can profit from understanding the rules of the game.
-One of the most fundamental
Analyzing the Market and the Product
-Everyone who sells information should think about what they might do to segment their market.
-Think about whether your market naturally subdivides into different categories of consumers and
whether their behaviors ar
-Bundling software applications can also allow you to significantly increase the value you extract from
your customers when it reduces the dispersion in their willingness to pay.
-if you charge a flat price, techniques that reduce dispersio
Personalize Pricing on the Internet
-Offering sales, close-outs, and other forms of promotional pricing is incredibly easy on the Internet
since prices can be changed instantaneously.
-The Internet offers a very inexpensive form of marketing research.
-If it is hard to differentiate your product, you can at least try to sell a lot of it. If you can sell more than
others, your average costs will be the lowest, allowing you to make money when others cannot.
-In traditional industries, red
The Information Economy
-Technology changes. Economic laws do not.
-Netscape, the one-time darling of the stock market, offers a good example of how economic principles
can serve as an early warning system.
-Interconnection battles have arisen regularly o
-Analyze and understand how much you invest in producing and selling your information.
-Information is costly to produce but cheap to reproduce.
-If you are forced to compete in a commodity market, be aggressive but not greedy.
-Digital technology changes two significant costs faced by a publisher of content
-Reproduction costs. Digital technology dramatically reduces the cost of making perfect
-Distribution costs. Digital technology allows these
A vector is defined as an ordered n-tuple of numbers x = [x1 ,., x n ]. The space consisting
of all vectors x is called a vector space. If xi , i = 1,., n is a real number, the space is
called a Euclidean vector s