Kerem Tomak | Frankfurt School of Finance & Management (original) (raw)

Papers by Kerem Tomak

International Conference on Information Systems, 2003

European Journal of Operational Research, Jun 1, 2008

Abstract Our motivation for this paper originates from recent advances in consumption and payment... more Abstract Our motivation for this paper originates from recent advances in consumption and payment technologies available for mobile commerce. Ubiquitous computing is enabling consumers worldwide to reach digital content and services whenever and wherever they request it. This capability further fuels “impatience” in consumption of such information goods. We model such consumer behavior using a hyperbolic discounting approach. A subset of these products, especially software, also inherit delayed network externalities as part of their consumption characteristics. This builds a tension between decision to consume now or to expedite consumption. We build a stylized model to assess the impact of immediate gratification on the profit maximizing behavior of a monopolist firm which produces an information good with network externalities. We find that serving “impatient” consumers is always profitable for a monopolist. For lower levels of network externalities, the monopolist can increase first period and decrease second period prices in equilibrium. As network externalities effect increases, prices converge to the traditional market (with exponential discounters) levels.

European Journal of Operational Research, Apr 1, 2008

Journal of Organizational Computing and Electronic Commerce, Dec 1, 1998

ABSTRACT

European Conference on Information Systems, 2004

Kluwer Academic Publishers eBooks, Dec 15, 2005

This paper aims to propose a novel approach to look at the formation of network of firms. We prop... more This paper aims to propose a novel approach to look at the formation of network of firms. We propose an economic model of strategic relationships among firms. The model treats firms as nodes in a network and analyses the equilibrium network structure. It recognizes the cost of setting up and maintaining relationship between firms. Unlike the previous research that analyses B2B networks after they are established, we look at the dynamics of how they come into existence and where they can be expected to converge. The paper provides conditions under which an exchange-based B2B is preferred to a peer-to-peer network. It also indicates the importance of asset specificity in the strategic network formation.

Electronic Markets, Mar 1, 2002

In order to reach the goal of frictionless information sharing, firms form different types of bus... more In order to reach the goal of frictionless information sharing, firms form different types of business-to-business (B2B) marketplaces that facilitate transactions among trading partners along any supply chain. Forecasts of the amount of revenue that will be generated over these technology platforms reach billions of dollars. Our aim in this paper is to present a novel approach to look at the formation of networks of firms. Unlike the previous research that analyses B2B networks after they are established, we look at the dynamics of how they come into existence and where they can be expected to converge. We use tools from non-cooperative game theory and strategic network formation literature to study the evolution of B2B marketplaces. The paper provides conditions under which an exchange-based B2B is preferred to a peer-to-peer (P2P) network. It also indicates the importance of asset specificity in the strategic link formation and shows ways to incorporate this effect in the framework it attempts to establish.

RePEc: Research Papers in Economics, Apr 16, 2004

IGI Global eBooks, Jan 18, 2011

In this thesis we identify and obtain structural results for two different problems that are moti... more In this thesis we identify and obtain structural results for two different problems that are motivated by electronic commerce infrastructure and bundling of information goods. Strategic implications of implementing a priority pricing scheme in an ATM-like network owned by a single firm is the subject of the first study. Network structure consists of a single link modeled as an Mx/D/1 queue with non-preemptive head-of-the-line priority service. The network manager's motive is to maximize the difference between revenue generated and the delay (penalty) cost. We obtain structural results for the two priority case both in the short and in the long run. In equilibrium, it is found that the network manager maximizes the price spread between the two priority class services. We show that when the capacity is also considered as a decision variable, simultaneous capacity and price setting is equivalent to choosing the capacity first and then the prices. Closed form solutions in both cases are provided. The second part of the thesis addresses a vital issue in the provision of bundled information goods. The problem motivation comes from the business practice of forming partnerships to provide bundled products that involve only one of the parties' effort for upgrade. Component based software products exhibit such characteristics. We find that in a duopoly market, upgrade quality may be used to prevent a possible price war hence benefitting both firms by keeping positive revenue flow. However, first period quality level may be deliberately chosen to be low while second period bundle prices are chosen to be high. ^

Oxford University Press eBooks, Oct 2, 2003

Wireless technologies extend a firm’s transactions from a stationary space to a mobile space. Tra... more Wireless technologies extend a firm’s transactions from a stationary space to a mobile space. Transactions and communications that take place in the mobile space, i.e. wireless Internet infrastructure, are defined as m-business. This chapter discusses how m-business services generate new business value. It presents a case study on Japan’s NTT DoCoMo i-mode, which introduced a new suite of multimedia services, new forms of connecting buyers and sellers to markets, and new incentives for customers to cocreate value.

The online advertising industry is currently based on two dominant business models: the pay-per-i... more The online advertising industry is currently based on two dominant business models: the pay-per-impression model and the pay-per-click model. These pricing models aim to address two dimensions of an advertisers&#39; objective function: brand awareness and sales generation. An alternative model, discussed but not widely used in the advertising industry, is pay-per-conversion, or more generally, pay-per-action. In this note, we discuss

Springer eBooks, Dec 3, 2007

Proceedings of the 8th international conference on Electronic commerce The new e-commerce: innovations for conquering current barriers, obstacles and limitations to conducting successful business on the internet - ICEC '06, 2006

Proceedings of the ninth international conference on Electronic commerce - ICEC '07, 2007