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
Efficient progressive sampling
KDD '99 Proceedings of the fifth ACM SIGKDD international conference on Knowledge discovery and data mining
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
Adoption of Internet-Based Product Customization and Pricing Strategie
HICSS '00 Proceedings of the 33rd Hawaii International Conference on System Sciences-Volume 6 - Volume 6
Nonlinear Pricing of Information Goods
Management Science
Information Goods and Vertical Differentiation
Journal of Management Information Systems
Personalized Pricing and Quality Differentiation
Management Science
A new restoration-based recommender system for shopping buddy smart carts
International Journal of Business Information Systems
Agent-based consumer learning in e-commerce
International Journal of Networking and Virtual Organisations
Multidimensional screening: online computation and limited information
Proceedings of the 10th international conference on Electronic commerce
Collaborative pricing model for bundling information goods
Journal of Information Science
Optimal pricing model for electronic products
Computers and Industrial Engineering
Decision Support Systems
Information Personalization in a Two-Dimensional Product Differentiation Model
Journal of Management Information 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.