Price competition between shrink-wrap software and cloud service firms under a stochastic model
Published in International Journal of Computational Economics and Econometrics, 2016
indexing: EconLit, IF = 0.765
Abstract
The authors establish a stochastic model of the price competition between shrink-wrap software and cloud service firms. They show that cloud service firms earn higher profits, but face higher risks compared to shrink-wrap software firms. In order to attract customers and earn higher profits, the authors obtain the result that shrink-wrap software firms need to focus on pricing strategies, by contrast, cloud service firms need to focus on quantity strategies
Recommended citation: Kuei-Yuan Cheng, Yao-Hsien Lee and Mei-Yu Lee*, 2016, Price Competition between Shrink-wrap Software and Cloud Service Firms under a Stochastic Model, Problems and Perspectives in Management, 14(2), 272-276. https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/7183/PPM_2016_02cont2_Cheng.pdf