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Auflistung nach Schlagwort "Switching costs"

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  • Zeitschriftenartikel
    Data Portability on the Internet
    (Business & Information Systems Engineering: Vol. 61, No. 5, 2019) Wohlfarth, Michael
    Data portability allows users to transfer data between competing online services. As data gets increasingly valuable for online services and users alike, the enforcement of data portability within the European Union by the General Data Protection Regulation will have important ramifications for the competition in online markets. Thus, this paper develops a game-theoretic model to examine firms' strategic reaction to data portability and to identify the ensuing market outcomes. It can be shown, among others, that although data portability is designed to protect users, they may be hurt because market entrants have an incentive to increase the amount of collected data compared to a regime without data portability. However, profits for new services and total surplus increase if the costs for implementation are not too large. This likely improves innovation and service variety. Consequently, the results provide important insights and case-specific recommendations for managers and policy makers in data-driven online markets.
  • Zeitschriftenartikel
    Security-Induced Lock-In in the Cloud
    (Business & Information Systems Engineering: Vol. 64, No. 4, 2022) Arce, Daniel
    Cloud services providers practice security-induced lock-in when employing cryptography and tamper-resistance to limit the portability and interoperability of users’ data and applications. Moreover, security-induced lock-in and users’ anti-lock-in strategies intersect within the context of platform competition. When users deploy anti-lock in strategies, such as using a hybrid cloud, a leader–follower pricing framework increases profits for cloud services providers relative to Nash equilibrium prices. This creates a second-mover advantage, as the follower’s increase in profits exceeds that of the leader owing to the potential for price undercutting. By contrast, introducing or enhancing security-induced lock-in creates both an increase in profits and a first-mover advantage. Cloud services providers therefore favor security-induced lock-in over price leadership. More broadly, we show why standardization of semantics, technologies, and interfaces is a nonstarter for cloud services providers.