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The multibillion-dollar online advertising industry continues to debate whether to use the CPC (cost per click) or CPA (cost per action) model as an industry standard. This article applies the economic framework of incentive contracts to study the trade-o s of these pricing models. In some conditions, the CPA model leads to higher publisher (or advertiser)(More)
The growth of Internet price search tools, notably shopbots, has reduced consumers’ search costs for price and some product characteristics. While a variety of analytic models predict that increased consumer search through shopbots will lower price levels among competing retailers, there is no consensus in the empirical literature as to whether price(More)
Peer-to-Peer networking is gaining popularity as a architecture for sharing information goods and other computing resources. However, these networks suffer from a high level of free-riding, whereby some users consume network resources without providing any network resources. The high levels of free-riding observed by several recent studies have led some to(More)
Peer-to-peer networks have emerged as a popular alternative to traditional client-server architectures for the distribution of information goods. Recent academic studies have observed high levels of free-riding in various peer-to-peer networks, leading some to suggest the imminent collapse of these communities as a viable information sharing mechanism. Our(More)
Trust is particularly important in online markets to facilitate the transfer of sensitive consumer information to online retailers. In electronic markets, various proposals have been made to facilitate these information transfers. We develop analytic models of hidden information to analyze the effectiveness of these regimes to build trust and their(More)
Information technology-enabled markets enhance retailers’ ability to collect, aggregate, and transfer consumer information. These technological capabilities have raised concerns that this information could be used in ways the consumer would not anticipate or authorize. These concerns have been met with a variety of proposals including approaches placing the(More)
Today’s online advertising contracts tie online advertising payments directly to campaign measurement data such as click-throughs and purchases. This paper applies the economic theory of incentive contracts to the study of these pricing models and provides potential explanations as to when and how CPC (cost-per-click-through) and CPA (cost-per-action)(More)
Peer-to-peer (P2P) services allow users to share networked resources, notably bandwidth and content, from the edges of the network. These services have been popularized because of file sharing — particularly the sharing of unlicensed copyrighted files. Concerns about such P2P file sharing were highlighted by content owners’ recent lawsuits against(More)
Full terms and conditions of use: http://pubsonline.informs.org/page/terms-and-conditions This article may be used only for the purposes of research, teaching, and/or private study. Commercial use or systematic downloading (by robots or other automatic processes) is prohibited without explicit Publisher approval, unless otherwise noted. For more(More)
The growth of Internet price search tools, notably shopbots, has reduced consumers’ search costs, allowing consumers to easily become informed of price and product characteristics among competing sellers online. While a variety of analytic models predict that increased consumer search through shopbots will lower price levels among competing retailers, there(More)
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