The measurement of end-user computing satisfaction
MIS Quarterly
Economic incentives in software design
Computational Economics
Information systems success measurement
Information systems success measurement
The emerging role of electronic marketplaces on the Internet
Communications of the ACM
Information rules: a strategic guide to the network economy
Information rules: a strategic guide to the network economy
The IS effectiveness matrix: the importance of stakeholder and system in measuring IS success
ICIS '98 Proceedings of the international conference on Information systems
Evaluating IS quality: exploration of the role of expectations on stakeholders' evaluation
Information technology evaluation methods and management
Managing I. T. as a Strategic Resource
Managing I. T. as a Strategic Resource
Information, Organization and Management
Information, Organization and Management
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The paper concerns with the peculiarities of consumer choice in information product markets. This is a multidisciplinary study based on both information system research and microeconomic theory. An extension is introduced to the conventional general theory of consumer choice for explicitly taking into account the impact of information product quality on consumer behaviour. Multiple quality characteristics, considered against the price of product, are an essential reason for consumer choice of high tech product in general and information product in particular. We assume that consumers are able to aggregate their preferences of multiple product characteristics into a product preference order. On the supply side, the product quality characteristics incur costs. In the case of information product, those costs are the costs of the first copy, and marginal costs are near zero. All of the above constitute the distinctive characteristics of the competitive mechanism in the digital economy and in information product markets. A model, based on the game theory is used to consider two special cases. The first one deals with monopolistic competition for a share of the market with a limited number of customers. Conditions are derived for IT firm survival. The second one considers conditions at which a monopoly is able to successfully introduce a new version if its information product.