Post by arfankj4 on Mar 4, 2024 21:58:25 GMT -5
Can you comment on this need to focus on a single revenue source A The single revenue source focus is one of the main findings of our analysis. Firms focus on a single revenue source when they tap exclusively into disclosure revenues or when they tap exclusively into price revenues. Our model reveals that focusing on a single revenue source is the most profitable strategy when firms compete for consumer information.
When two firms compete in the market the optimal strategies are for one firm to set a high level of disclosure and subsidize consumers in exchange and for the other firm to charge high prices but not to engage in information disclosure. The result can be understood as a natural consequence of the need for differentiation Poland Mobile Number List in this market. Firms benefit from differentiating their services and thus one firm has incentives to set a high level of disclosure and the other firm to set a low level of disclosure. Because disclosure levels generate revenues and affect consumer participation and information provision prices and disclosure levels are negatively correlated.
The firm setting a high level of disclosure needs to subsidize consumers in order to attract them to the service and the firm setting a low level of disclosure quotes high prices to remain profitable. Ts has profound implications for their business models and the logic with which they operate. An example that illustrates our result is that of Google and Microsoft. Both firms offer consumers online services to manage e mail contacts calendar events and documents. Google offers these services for free but engages in disclosure by profiling consumers and charging advertisers to target them.
When two firms compete in the market the optimal strategies are for one firm to set a high level of disclosure and subsidize consumers in exchange and for the other firm to charge high prices but not to engage in information disclosure. The result can be understood as a natural consequence of the need for differentiation Poland Mobile Number List in this market. Firms benefit from differentiating their services and thus one firm has incentives to set a high level of disclosure and the other firm to set a low level of disclosure. Because disclosure levels generate revenues and affect consumer participation and information provision prices and disclosure levels are negatively correlated.
The firm setting a high level of disclosure needs to subsidize consumers in order to attract them to the service and the firm setting a low level of disclosure quotes high prices to remain profitable. Ts has profound implications for their business models and the logic with which they operate. An example that illustrates our result is that of Google and Microsoft. Both firms offer consumers online services to manage e mail contacts calendar events and documents. Google offers these services for free but engages in disclosure by profiling consumers and charging advertisers to target them.