Product recommendation systems have been widely adopted in e-commerce to improve product visibility and promote sales. This study examines the effect of recommendation system in the increasingly popular mobile app market, which is uniquely characterized with its multitude of product choices and the prevailing use of the freemium model. We constructed a panel dataset using a wide range of daily ...

Multi-Product Competition and Informative Advertising In several product categories, such as cereals, ice cream, and detergents, competing firms market a variety of products to meet the needs of their diverse consumers. Furthermore, these firms inform consumers about their products using advertising. In this paper, we propose a novel framework for studying multi-product competition and informat...

Most analysis of market power assumes that managers are perfect agents for shareholders. This paper relaxes that assumption. When managers of a multi-product firm exert unobservable effort to improve product quality, price coordination incentives tradeoff with effort incentives. This makes some intra-firm price competition optimal, explaining why many multi-product firms allow for competition b...

In many markets, competing but differentiated firms offer a product line in order to target each product to a different type of customer. Under competition, firms, while trying to target different products to different segments, are also interested in "stealing" customers from the competitors and, in particular, customers from the most profitable segments. How should a profit-maximising firm al...

That greater product market competition has the potential to affect outcomes in labour and product markets is borne out by one of the key premises of standard economic theory which predicts that, all other things held constant, prices should be lower and efficiency enhanced by more competition. In this paper we test this notion by considering the relationship between product market competition ...

This paper investigates the relationship between capital structure and firm performance, paying particular attention to the degree of industry competition. The paper applies a novel measure of competition, the Boone indicator, to the leverage-performance relationship. Using panel data consisting of 257 South African firms over the period 1998–2009, this paper examines the effect of capital stru...

This paper empirically investigates the determinants of R&D diversification strategies in the drug industry. It enriches the existing literature by proposing to look at diversification factors, which reflect market and technological proximity of an R&D project towards other projects within a firm’s portfolio as well as R&D competition factors. Additionally, the characteristics of R&D in the mar...

This paper derives a three stage Cournot–oligopoly game for product innovation, expenditure on introducing the product and competition on the product market. Product innovation is assumed to increase consumer utility but is effective only if the innovating firm invests in marketing, so that consumers become aware of the newly developed product. Firms first decide whether or not to conduct produ...

Since transition markets are playing an increasingly important role in the global economy and in the international innovation arena, there is a need to understand how IT affects firms’ process and product innovations and ultimately their competitive performance in these markets. Drawing on innovation literature and the IT capabilities portfolio perspective as well as the distinctive environment...