Understanding Network Effects in Software Markets: Evidence from Web Server Pricing

Gallaugher, John; Wang, Yuming

doi:10.2307/4132311

Cited by 228 publications

(159 citation statements)

References 52 publications

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“…Empirical studies are being developed. An example of such studies analyses web browsers and complementary software (Gallaugher and Wang, 2002). However, the formal analysis of dynamic markets with several complementary products remains limited, even though its prescriptions would obviously be of interest to practitioners.…”

Section: Multi-product Markets and Two-sided Marketsmentioning

confidence: 99%

Dynamic Pricing in Management Science

Chenavaz¹,

Carrier²,

Etienne³

et al. 2011

JESR

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Section: Multi-product Markets and Two-sided Marketsmentioning

confidence: 99%

Dynamic Pricing in Management Science

Chenavaz¹,

Carrier²,

Etienne³

et al. 2011

JESR

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“…Specifically, when customers have different preferences for a platform's particular characteristic, platform owners can simultaneously launch different versions of the platform that better fit the needs of different types of users [97]. Platform owners can explore new markets by launching trial versions for potential adopters [98] and basic versions for beginners and exploit their existing resources and capabilities with premium versions for experts [99].…”

Section: Differentiationmentioning

confidence: 99%

Unraveling Platform Strategies: A Review from an Organizational Ambidexterity Perspective

et al. 2017

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Abstract:Platform strategies, which highlight the interdependence in and evolution of business ecosystems, are increasingly relevant for sustainable business models in the digital era. So far, platform research has existed as a fragmented body of insights from different fields, but an integrated theoretical perspective can lead to a more coherent understanding of the research overall. Organizational ambidexterity emphasizes the balance between exploration and exploitation, which is particularly conducive to understanding the sustainability of a firm. Using an organizational ambidexterity perspective, the authors analyze five platform strategies: pricing, openness, integration, differentiation, and envelopment. This paper provides a systematic review of the theoretical and empirical studies in leading management, economics, and information systems journals from 2000 to 2016. The findings show that platform strategies can help platform owners achieve ambidexterity by domain, temporal, and organizational separation. Finally, this paper proposes an agenda for future research.

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“…A somewhat idealistic view of this phenomenon is known as Metcalfe's law "the value of a network is the number of users squared" [15]. Empirical evidence suggests that the value of network externalities can be in par with product features when a product's economic value is evaluated [11,16,12]. In other words, compatibility with other pieces of software can be as important as the features and quality of the software.…”

Section: Values Of Utility-seeking Customersmentioning

confidence: 99%

Integrating Value and Utility Concepts into a Value Decomposition Model for Value-Based Software Engineering

Rönkkö¹,

Frühwirth²,

Biffl

2009

Lecture Notes in Business Information Processing

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Abstract.Value-based software engineering (VBSE) is an emerging stream of research that addresses the value considerations of software and extends the traditional scope of software engineering from technical issues to businessrelevant decision problems. While the concept of value in VBSE relies on the well-established economic value concept, the exact definition for this key concept within VBSE domain is still not well defined or agreed upon. We argue the discourse on value can significantly benefit from drawing from research in management, particularly software business. In this paper, we present three aspects of software: as a technology, as a design, and as an artifact. Furthermore, we divide the value concept into three components that are relevant for software product development companies and their customers: intrinsic value, externalities and option value. Finally, we propose a value decomposition matrix based on technology views and value components.

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Understanding Network Effects in Software Markets: Evidence from Web Server Pricing

Abstract: We wish to thank Rob Fichman, Jeff Ringuest, Ron Weber, attendees of the Boston College Work in Progress seminar and three anonymous reviewers for their many helpful comments on earlier drafts of this paper

Cited by 228 publications

References 52 publications

Dynamic Pricing in Management Science

Dynamic Pricing in Management Science

Unraveling Platform Strategies: A Review from an Organizational Ambidexterity Perspective

Integrating Value and Utility Concepts into a Value Decomposition Model for Value-Based Software Engineering

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