Production Operations

Download Advances in the Economics of Information Systems by Kerem Tomak PDF

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By Kerem Tomak

Advances within the Economics of knowledge platforms presents a large viewpoint at the concerns relating to functions of economics to details structures region. From grid computing to on-line auctions, the reader can locate novel makes use of of economics instruments in figuring out thoughts with regards to using expertise on the enterprise point. IT execs also will locate wealthy research of difficulties at their schedule and enjoy the insights this reference box offers.

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Although information transparency on the B2B exchange is socially desirable, its private desirability is deeply divided between producers and consumers, and even among producers themselves. Our model shows a conflict between producers’ and consumers’ interests regarding information transparency of the B2B exchange. Producer surplus may rise because the interaction effect and allocation effect together tend to dominate the variation effect. Concerning the consumer side, there is no allocation effect present, but the interaction effect is operating against the variation effect.

Copyright © 2005, Idea Group Inc. Copying or distributing in print or electronic forms without written permission of Idea Group Inc. is prohibited. 28 Zhu Who Will Join the B2B Exchange? Having derived the optimal outputs and equilibrium profits, we are now prepared to determine whether the firms in the exchange can expect to make higher profits than the non-members. Each firm considers information exchange beneficial in the classical Pareto-dominance sense when E[πi*] > E[πj*], for any given exchange size, k, i∈K and j∈N \ K.

In some industries, firms combined their efforts and resources to operate a shared platform on which they could buy or sell products via the Internet. For example, the major automobile manufacturers, including General Motors, Daimler Chrysler, Ford, Nissan, and Renault (later to be joined by PeugoetCitroen) formed Covisint. This provided an industry-wide electronic marketplace connecting firms so that they could buy and sell parts and supplies more cheaply. Another approach that firms took is to develop private exchanges to conduct transactions online with their selected customers or suppliers, like what Wal-Mart has done.

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