[논문]Software Bundling for Competitive Advantage: Vendor Strategies and Public Policy Implications

Kim, Tae-Ha; Shin, Hyung-Deok; Dutta, Amitava

Software Bundling for Competitive Advantage: Vendor Strategies and Public Policy Implications 원문보기

Asia pacific journal of information systems, v.20 no.2, 2010년, pp.39 - 62

Kim, Tae-Ha (Chung-Ang University) , Shin, Hyung-Deok (Hongik University) , Dutta, Amitava (George Mason University)

Abstract ▼ AI-Helper

As an engineered product, a software package has multiple dimensions that must be designed judiciously to enhance its competitive viability. Functionality, reliability and price are three such common dimensions. However, many software products are sold as bundles of individual components and the competitive impact of bundling has received less attention in the research literature. In this paper, we examine the implications of software vendors using bundling as an element of competitive strategy. A game theoretic model of the actions of an incumbent and a new entrant is developed and the impact on vendor and consumer welfare is analyzed. Numerical experiments with the model show that (i) increasing bundle size is an effective strategy for the incumbent to increase its payoff at the cost of the entrant's payoff and consumer surplus, especially when the entrant's quality is low (ii) in the presence of bundling, the entrant can still increase its own payoff and consumer surplus at the cost of the incumbent's payoff, by increasing product quality up to the level that best segments market demand with the incumbent and (iii) an increase in bundle size by the incumbent, or an increase in quality by the entrant, can both result in an increase of total surplus. Similar results are observed in a related case where the entrant offers free software bundles. Our results provide insights into how software vendors may strategically use bundling and quality as additional product dimensions in order to stay competitive in the market. These results also inform the competing vendors of the impact of bundling related public policy actions on their respective payoffs.

주제어

참고문헌 (31)

Adam, W. and Yellen, J., "Commodity Bundling and the Burden of Monopoly," Quarterly Journal of Economics, 1976, pp. 475-498.
Bakos, Y. and Brynsolfsson, E. "Bundling Information Goods: Pricing, Profits, and Efficiency," Management Science, Vol. 45, No. 12, December 1999, pp. 1613-1630.

상세보기
Bakos, Y. and Brynsolfsson, E., "Bundling and Competition on the Internet," Marketing Science, Vol. 19, No. 1, Winter 2000, pp. 63-82.

상세보기
Behrens, B.C. and Levary, RR, "Practical Legal Aspect of Software Reverse Engineering," Communications of the ACM, Vol. 42, No.2, February 1998, pp. 27-29.
Berman, L. and Dunn, D., "Service Bundling and Strategic Equilibrium in the Information Services Industry," Journal of Economics and Business, Vol. 39, 1987, pp. 115-129.

상세보기
Dansby, R and Conrad, C., "Commodity Bundling," AEA Papers and Proceedings, Vol. 74, No.2, May 1984, pp. 377-381.
Dewan, Rand Freimer, M., "Consumers Prefer Bundled Add-Ins," Journal of Management Information Systems, Vol. 20, No.2, Fall 2003, pp. 99-111.

상세보기
Farrell, J. and Saloner, G., "Standardization, compatibility, and innovation," Rand Journal of Economics, Vol. 16, No.1, 1985 pp. 442-455.
Geng, X., Stinchcombe, M.B., and Whinston, A.B., "Bundling Information Goods of Decreasing Value," Management Science, Vol. 51, No.4, April 2005, pp. 662-667.

상세보기
Hanson, W. and Martin, R, "Optimal Bundle Pricing," Management Science, Vol. 36, No.2, February 1990, pp. 155-174.

상세보기
Hahn, R (Editor), "Governrnent Policy toward Open Source Software," AEI-Brookings Joint Center for Regulatory Studies, 2002.
Huang, G.Q., Zhang, X.Y., and Lo, V.H.Y., "Integrated Configuration of Platform Products and Supply Chains for Mass Customization: A Game-Theoretic Approach," IEEE Transaction on Engineering Management, Vol. 54, No.1, February 2007, pp. 156-171.
Johnson, J.P. and Myatt, D., "On the Simple Economics of Advertising, Marketing, and Product Design," Oxford University Economics Discussion Paper 185, August 2004.
Jung, H., Kim,S., and Chung, C., "Measuring Software Product Quality: A Survey of ISO/IEC 9126," IEEE Software, September/ October, 2004, pp. 88-92.
Katz, M.L. and Shapiro, C., "Network Externality, Competition, and Compatibiity," The American Economic Review, Vol. 75, No. 3, 1985, pp. 424-440.

상세보기
Lee,S., "Bundling Strategy in Base-Supplemental Goods Markets: the case of Microsoft," European Journal of Information Systems, 2000, pp. 217-225.
McAfee, R, McMillan, J., and Whinston, M., "Multiproduct Monopoly, Commodity Bundling, and Correlation of Values," Quarterly Journal of Economics, 1989, pp. 371- 384.
Meese, A., "Monopoly Bundling in Cyberspace: how many products does Microsoft sell?," Antitrust Bulletin, Vol. 44, No.1, Spring 1999.
Nalebuff, B., "Competing against Bundles," Working Paper, Yale School of Management Working Paper Series H, New Haven, CT, Vol. 7, November 2000.
Nalebuff, B., "Bundling as an Entry Barrier," Quarterly Journal of Economics, February 2004, pp. 159-187.
Newman, N., "From Microsoft Word to Microsoft World: How Microsoft is Building a Global Monopoly," A NetAction White Paper, http://www.netaction.org/msoft/ world/MSWord2World.html.
Pressman, R, Software Engineering, Fourth Edition, 1997.
Ramanathan, R, Statistical Methods in Econometrics, MIT Press, 1993.
Saygin, Y., Reisman, A., and Wang, Y. "Value of Information Gained from Data Mining in the Context of Information Sharing," IEEE Transactions on Engineering Management, Vol. 51, No.4, November 2004, pp. 441-450.

상세보기
Stigler, G., "A Note on Block Booking," The Organization of Industries, Irwin, 1968, pp. 165-170.
Stremersch, S. and Tellis, G., "Strategic Bundling of Products and Prices: A New Synthesis for Marketing," Journal of Marketing, Vol. 66, No. 1, January 2002, pp. 55-72.

상세보기
Varian, H., Information Rules, Harvard Business School Press, 1999.
Uri, R, "Minimum Quality Standards, Fixed Costs, and Competition," Rand Journal of Economics, Vol. 22, No.4, Winter 1991, pp. 490-504.

상세보기
Westland, J.C., "Congestion and Network Externalities in the Short Run Pricing Of Information Systems Services," Management Science, Vol. 38, No.7, July 1992, pp. 992-1009.

상세보기
Whang, S., "Contracting for Software Development," Management Science, Vol. 38, No.3, March 1992, pp. 307-324.

상세보기
Whinston, M., "Tying, Foreclosure, and Exclusion," The American Economic Review, Vol. 80, No.4, September 1990, pp. 837- 859.

상세보기

내보내기 구분	파일저장 인쇄 메일전송
구성항목	기본정보 상세정보 관리번호, 논문명, 저널/프로시딩명, 저자 , 발행년, 권, 호, 시작페이지, 끝페이지, 발행기관 관리번호, 논문명, 대등논문명, 저자 , 저널/프로시딩명, 발행기관, 발행년, 발행언어, 권, 호, 시작페이지, 끝페이지, ISBN, ISSN, 주제분야, 키워드, 초록(한글), 초록(영문), 저자(소속기관)
저장형식	Text(ASCII format) Excel format RefWorks Direct Export RIS format (for Reference Manager, ProCite, EndNote), Scholar's Aids, Mendeley
메일정보	받는사람 (필수) @ 보내는사람 (선택) @ 제목 내용 KISTI 검색결과 이메일 서비스
안내	총 건의 자료가 검색되었습니다. 다운받으실 자료의 인덱스를 입력하세요. (1-10,000) 검색결과의 순서대로 최대 10,000건 까지 다운로드가 가능합니다. 데이타가 많을 경우 속도가 느려질 수 있습니다.(최대 2~3분 소요) 다운로드 파일은 UTF-8 형태로 저장됩니다. 파일의 내용이 제대로 보이지 않을실 때는 웹브라우저 상단의 보기 -> 인코딩 -> 자동선택 여부를 확인하십시오. ~ Text(ASCII format) Excel format

연합인증

Software Bundling for Competitive Advantage: Vendor Strategies and Public Policy Implications 원문보기

Abstract ▼ AI-Helper

주제어

참고문헌 (31)

이 논문을 인용한 문헌

저자의 다른 논문 :

관련 콘텐츠

원문 보기

원문 URL 링크

연관된 기능

이 논문과 함께 이용한 콘텐츠

AI-Helper ※ AI-Helper는 오픈소스 모델을 사용합니다.

선택된 텍스트

연합인증

Software Bundling for Competitive Advantage: Vendor Strategies and Public Policy Implications 원문보기

Abstract ▼ AI-Helper

주제어

참고문헌 (31)

이 논문을 인용한 문헌

저자의 다른 논문 :

김태하 (22)

관련 콘텐츠

원문 보기

원문 URL 링크

연관된 기능

이 논문과 함께 이용한 콘텐츠

AI-Helper ※ AI-Helper는 오픈소스 모델을 사용합니다.

선택된 텍스트