An economic analysis of strategic information technology investments
MIS Quarterly - Special issue on the strategic use of information systems
An economic analysis of interorganizational information technology
Decision Support Systems
Agents that reduce work and information overload
Communications of the ACM
Added value and pricing with information technology
MIS Quarterly
Responsive pricing in the Internet
Internet economics
An agent-based framework for building decision support systems
Decision Support Systems - Special issue on decision support technologies for complex and open organizations
Bundling Information Goods: Pricing, Profits, and Efficiency
Management Science
Price dynamics and quality in information markets
Decision Support Systems - Special issue on information and computational economics
Integrating User Preferences and Real-Time Workload in Information Services
Information Systems Research
Nonlinear Pricing of Information Goods
Management Science
Information Goods and Vertical Differentiation
Journal of Management Information Systems
Customer requirements mapping method based on association rules mining for mass customisation
International Journal of Computer Applications in Technology
Platform-based information goods: The economics of exclusivity
Decision Support Systems
A Fuzzy Logic System for Bargaining in Information Markets
ACM Transactions on Intelligent Systems and Technology (TIST)
A generalized model of partial resale
Decision Support Systems
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Electronic commerce has enabled the use of intelligent agent technologies that can evaluate buyers, customize products, and price in real-time. Our model of an electronic market with customizable products analyzes the pricing, profitability and welfare implications of agent-based technologies that price dynamically based on product preference information revealed by consumers. We find that in making the trade-off between better prices and better customization, consumers invariably choose less-than-ideal products. Furthermore, this trade-off has a higher impact on buyers on the higher end of the market and causes a transfer of consumer surplus towards buyers with a lower willingness to pay. As buyers adjust their product choices in response to better demand agent technologies, seller revenues decrease since the gains from better buyer information are dominated by the lowering of the total value created from the transactions. We study the strategic and welfare implications of these findings, and discuss managerial and technology development guidelines.