There are five dominating market forms in the digital economy: de facto monopoly, oligopoly, mark... more There are five dominating market forms in the digital economy: de facto monopoly, oligopoly, market with monopolistic competition, monopsony, and oligopsony. A multisided platform may be present in several markets with different structures, for example, being a monopoly in one segment, an oligopsony in another segment, and an oligopoly in a third segment. One particular characteristic of de facto monopolies in the digital economy is that they offer their products free of charge. This makes it almost impossible for new entrants to compete with them unless they can offer richer and better services, of course, also free of charge. These enterprises are multisided platforms acquiring revenues from other market sectors, often being oligopolies in these sectors. One particular challenge for oligopolies is the prisoner’s dilemma. Prisoner’s dilemma implies that competitors may be forced into a situation where the revenues of all of them are small. This may then squeeze the weakest of them ...
This chapter defines and explains several characteristics concerning digital goods and services. ... more This chapter defines and explains several characteristics concerning digital goods and services. The most important characteristic of the digital market is that the marginal cost of production is zero, making the digital market different from traditional markets. Therefore, competition in digital markets is different. Since the marginal cost is zero, there are several examples of markets where the average return per user (ARPU) is zero (e.g., Facebook, Google Search, and free apps), setting aside standard supply/demand analysis. Digital goods and services are always non-rival since the supply is infinite and the marginal cost is zero. For the same reason, it is simple to construct product bundles of digital goods and services. When it comes to other characteristics such as commoditization and transaction costs, digital goods and services are not different from physical products.
This chapter defines and explains several characteristics concerning digital goods and services. ... more This chapter defines and explains several characteristics concerning digital goods and services. The most important characteristic of the digital market is that the marginal cost of production is zero, making the digital market different from traditional markets. Therefore, competition in digital markets is different. Since the marginal cost is zero, there are several examples of markets where the average return per user (ARPU) is zero (e.g., Facebook, Google Search, and free apps), setting aside standard supply/demand analysis. Digital goods and services are always non-rival since the supply is infinite and the marginal cost is zero. For the same reason, it is simple to construct product bundles of digital goods and services. When it comes to other characteristics such as commoditization and transaction costs, digital goods and services are not different from physical products.
In the framework of the SANDRA project at the Center for Technology at Kjeller, a TINA Distribute... more In the framework of the SANDRA project at the Center for Technology at Kjeller, a TINA Distributed Processing Environment (DPE) is realised using a CORBA-implementation. This DPE is intended for the design and implementation of telecommunications applications. Ideally, the environment must be able to support all types of telecommunications applications but for the time being, focuses are primarily directed to mobile applications. Telecommunications applications are usually distributed, soft real-time and at the same time, data-intensive applications. This puts severe requirements on the platform. This paper identifies two problems encountered when using CORBA, namely the lack of stream interface and integration of database. Each problem is described thoroughly and a solution is proposed.
Lock-in to a technology or supplier implies that it is expensive for the customer to switch to a ... more Lock-in to a technology or supplier implies that it is expensive for the customer to switch to a competing technology or supplier. The expenses may be monetary, psychological, or associated with loss of intangible assets. There are several mechanisms that create lock-in: expenses associated with spare parts, training, and maintenance; incompatibility of formats and potential loss of information; and loss of advantages gained over time. Sometimes the lock-in barriers are generated by strong network effects. This may also cause path dependence that sometimes leads to winner-takes-all situations in which one supplier has become a de facto monopoly or one technology has become a de facto standard. It is difficult for the authorities to control lock-in by regulations since in several cases the switching costs cannot be eliminated at all, for example, costs associated with spare parts and maintenance and problems associated with loss of information. Suppliers may consciously build lock-in mechanisms into their products that is impossible for the customers to escape.
Lock-in to a technology or supplier implies that it is expensive for the customer to switch to a ... more Lock-in to a technology or supplier implies that it is expensive for the customer to switch to a competing technology or supplier. The expenses may be monetary, psychological, or associated with loss of intangible assets. There are several mechanisms that create lock-in: expenses associated with spare parts, training, and maintenance; incompatibility of formats and potential loss of information; and loss of advantages gained over time. Sometimes the lock-in barriers are generated by strong network effects. This may also cause path dependence that sometimes leads to winner-takes-all situations in which one supplier has become a de facto monopoly or one technology has become a de facto standard. It is difficult for the authorities to control lock-in by regulations since in several cases the switching costs cannot be eliminated at all, for example, costs associated with spare parts and maintenance and problems associated with loss of information. Suppliers may consciously build lock-in mechanisms into their products that is impossible for the customers to escape.
The multisided platform (MSP) is an essential business construct in the digital economy. Some of ... more The multisided platform (MSP) is an essential business construct in the digital economy. Some of the largest companies in the world—including Google, Amazon, and eBay—exploit the MSP in their business models. Fundamental insights into the MSP are crucial to understand the business operations of the digital economy and how new innovative digital services are adopted in the market. The MSP ecosystem is complex and dynamic, and involves heterogeneous stakeholders with different business motivations. This paper classifies the various types of MSPs, distinguished by the network effect between user groups. Moreover, this paper shows how the original diffusion model of Frank Bass can be extended to analyze the temporal evolution of multisided platforms. Analytical models using coupled sets of ordinary differential equations are developed for several examples of two-sided platforms. For some of these examples, analytical solutions are found.
An organization may generate value in three different ways: being a chain transforming raw materi... more An organization may generate value in three different ways: being a chain transforming raw material to physical products, a shop solving problems for clients, or a network offering mediation services between clients. Value networks are particularly important since most businesses in the digital economy are networks. All three types of value creation are described and compared. One particularly important point is to show how Porter’s five forces model—developed for strategic analysis of value chains—can be extended to value networks as well. Because of its layered structure, the Internet gives rise to three independent types of business segments: operation of networks, manufacturing of user equipment, and provision of services and applications. This gives rise to new forms of cooperation and competition between stakeholders both in the same layer and in different layers. Sometimes stakeholders in the same layer must both cooperate and compete at the same time. This is called coopetit...
Proceedings of the Vldb 2001 International Workshop on Databases in Telecommunications Ii, Sep 10, 2001
From the viewpoint of information storage, the history of telecommunications can be divided into ... more From the viewpoint of information storage, the history of telecommunications can be divided into three epochs. The first epoch ended in 1993, take or give one or two years; the second epoch is ending now in 2001. What are then the characteristics of these epochs and why are the awareness of this evolution so important?
Proceedings of the 4th International Conference on Intelligent User Interfaces, Dec 1, 1998
ABSTRACT Current mobile communication solutions leave out information about the context in which ... more ABSTRACT Current mobile communication solutions leave out information about the context in which the communication takes place. Context is, however, a key factor for the success of interpersonal communication. The contextual communication system described in this paper enhances ...
Telephone signalling and set-up procedures for the Marots system are presented in terms of flexib... more Telephone signalling and set-up procedures for the Marots system are presented in terms of flexibility, reliability, efficiency, automation, and interworking. The control channel (shore-to-ship) and the request channel (ship-to-shore) are outlined with reference to interregister signalling. Procedures for ship- and shore-originated calls are presented noting that the post-dialling delay is an important quality measure for signalling procedures.
This specification provides design guidelines for the common part of platforms for support of mac... more This specification provides design guidelines for the common part of platforms for support of machine-to-machine (M2M) services. The document first provides definitions for the relevant terminology, and subsequently specifies the architecture and interfaces for the general design. Further, the non-functional requirements are identified, and the services provided by the platform are described. Further, the design principles and design tools are
There are five dominating market forms in the digital economy: de facto monopoly, oligopoly, mark... more There are five dominating market forms in the digital economy: de facto monopoly, oligopoly, market with monopolistic competition, monopsony, and oligopsony. A multisided platform may be present in several markets with different structures, for example, being a monopoly in one segment, an oligopsony in another segment, and an oligopoly in a third segment. One particular characteristic of de facto monopolies in the digital economy is that they offer their products free of charge. This makes it almost impossible for new entrants to compete with them unless they can offer richer and better services, of course, also free of charge. These enterprises are multisided platforms acquiring revenues from other market sectors, often being oligopolies in these sectors. One particular challenge for oligopolies is the prisoner’s dilemma. Prisoner’s dilemma implies that competitors may be forced into a situation where the revenues of all of them are small. This may then squeeze the weakest of them ...
This chapter defines and explains several characteristics concerning digital goods and services. ... more This chapter defines and explains several characteristics concerning digital goods and services. The most important characteristic of the digital market is that the marginal cost of production is zero, making the digital market different from traditional markets. Therefore, competition in digital markets is different. Since the marginal cost is zero, there are several examples of markets where the average return per user (ARPU) is zero (e.g., Facebook, Google Search, and free apps), setting aside standard supply/demand analysis. Digital goods and services are always non-rival since the supply is infinite and the marginal cost is zero. For the same reason, it is simple to construct product bundles of digital goods and services. When it comes to other characteristics such as commoditization and transaction costs, digital goods and services are not different from physical products.
This chapter defines and explains several characteristics concerning digital goods and services. ... more This chapter defines and explains several characteristics concerning digital goods and services. The most important characteristic of the digital market is that the marginal cost of production is zero, making the digital market different from traditional markets. Therefore, competition in digital markets is different. Since the marginal cost is zero, there are several examples of markets where the average return per user (ARPU) is zero (e.g., Facebook, Google Search, and free apps), setting aside standard supply/demand analysis. Digital goods and services are always non-rival since the supply is infinite and the marginal cost is zero. For the same reason, it is simple to construct product bundles of digital goods and services. When it comes to other characteristics such as commoditization and transaction costs, digital goods and services are not different from physical products.
In the framework of the SANDRA project at the Center for Technology at Kjeller, a TINA Distribute... more In the framework of the SANDRA project at the Center for Technology at Kjeller, a TINA Distributed Processing Environment (DPE) is realised using a CORBA-implementation. This DPE is intended for the design and implementation of telecommunications applications. Ideally, the environment must be able to support all types of telecommunications applications but for the time being, focuses are primarily directed to mobile applications. Telecommunications applications are usually distributed, soft real-time and at the same time, data-intensive applications. This puts severe requirements on the platform. This paper identifies two problems encountered when using CORBA, namely the lack of stream interface and integration of database. Each problem is described thoroughly and a solution is proposed.
Lock-in to a technology or supplier implies that it is expensive for the customer to switch to a ... more Lock-in to a technology or supplier implies that it is expensive for the customer to switch to a competing technology or supplier. The expenses may be monetary, psychological, or associated with loss of intangible assets. There are several mechanisms that create lock-in: expenses associated with spare parts, training, and maintenance; incompatibility of formats and potential loss of information; and loss of advantages gained over time. Sometimes the lock-in barriers are generated by strong network effects. This may also cause path dependence that sometimes leads to winner-takes-all situations in which one supplier has become a de facto monopoly or one technology has become a de facto standard. It is difficult for the authorities to control lock-in by regulations since in several cases the switching costs cannot be eliminated at all, for example, costs associated with spare parts and maintenance and problems associated with loss of information. Suppliers may consciously build lock-in mechanisms into their products that is impossible for the customers to escape.
Lock-in to a technology or supplier implies that it is expensive for the customer to switch to a ... more Lock-in to a technology or supplier implies that it is expensive for the customer to switch to a competing technology or supplier. The expenses may be monetary, psychological, or associated with loss of intangible assets. There are several mechanisms that create lock-in: expenses associated with spare parts, training, and maintenance; incompatibility of formats and potential loss of information; and loss of advantages gained over time. Sometimes the lock-in barriers are generated by strong network effects. This may also cause path dependence that sometimes leads to winner-takes-all situations in which one supplier has become a de facto monopoly or one technology has become a de facto standard. It is difficult for the authorities to control lock-in by regulations since in several cases the switching costs cannot be eliminated at all, for example, costs associated with spare parts and maintenance and problems associated with loss of information. Suppliers may consciously build lock-in mechanisms into their products that is impossible for the customers to escape.
The multisided platform (MSP) is an essential business construct in the digital economy. Some of ... more The multisided platform (MSP) is an essential business construct in the digital economy. Some of the largest companies in the world—including Google, Amazon, and eBay—exploit the MSP in their business models. Fundamental insights into the MSP are crucial to understand the business operations of the digital economy and how new innovative digital services are adopted in the market. The MSP ecosystem is complex and dynamic, and involves heterogeneous stakeholders with different business motivations. This paper classifies the various types of MSPs, distinguished by the network effect between user groups. Moreover, this paper shows how the original diffusion model of Frank Bass can be extended to analyze the temporal evolution of multisided platforms. Analytical models using coupled sets of ordinary differential equations are developed for several examples of two-sided platforms. For some of these examples, analytical solutions are found.
An organization may generate value in three different ways: being a chain transforming raw materi... more An organization may generate value in three different ways: being a chain transforming raw material to physical products, a shop solving problems for clients, or a network offering mediation services between clients. Value networks are particularly important since most businesses in the digital economy are networks. All three types of value creation are described and compared. One particularly important point is to show how Porter’s five forces model—developed for strategic analysis of value chains—can be extended to value networks as well. Because of its layered structure, the Internet gives rise to three independent types of business segments: operation of networks, manufacturing of user equipment, and provision of services and applications. This gives rise to new forms of cooperation and competition between stakeholders both in the same layer and in different layers. Sometimes stakeholders in the same layer must both cooperate and compete at the same time. This is called coopetit...
Proceedings of the Vldb 2001 International Workshop on Databases in Telecommunications Ii, Sep 10, 2001
From the viewpoint of information storage, the history of telecommunications can be divided into ... more From the viewpoint of information storage, the history of telecommunications can be divided into three epochs. The first epoch ended in 1993, take or give one or two years; the second epoch is ending now in 2001. What are then the characteristics of these epochs and why are the awareness of this evolution so important?
Proceedings of the 4th International Conference on Intelligent User Interfaces, Dec 1, 1998
ABSTRACT Current mobile communication solutions leave out information about the context in which ... more ABSTRACT Current mobile communication solutions leave out information about the context in which the communication takes place. Context is, however, a key factor for the success of interpersonal communication. The contextual communication system described in this paper enhances ...
Telephone signalling and set-up procedures for the Marots system are presented in terms of flexib... more Telephone signalling and set-up procedures for the Marots system are presented in terms of flexibility, reliability, efficiency, automation, and interworking. The control channel (shore-to-ship) and the request channel (ship-to-shore) are outlined with reference to interregister signalling. Procedures for ship- and shore-originated calls are presented noting that the post-dialling delay is an important quality measure for signalling procedures.
This specification provides design guidelines for the common part of platforms for support of mac... more This specification provides design guidelines for the common part of platforms for support of machine-to-machine (M2M) services. The document first provides definitions for the relevant terminology, and subsequently specifies the architecture and interfaces for the general design. Further, the non-functional requirements are identified, and the services provided by the platform are described. Further, the design principles and design tools are
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