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Authors: Murphy, Frederic H.
Stohr, Edward A.
Keywords: Electronic markets;information goods;competitive equilibria
Issue Date: 22-Dec-1999
Publisher: Stern School of Business, New York University
Series/Report no.: IS-99-16
Abstract: The rapid growth and great popularity of Internet sites that specialize in providing intangible services in the form of information and community services gives rise to new forms of competition. Information Web sites such as and community sites such as provide free "content" and rely on advertising and hosting revenues to generate income. The competition between content sites in the same market niche is intense and only a few companies are likely to survive. In this paper, we examine a number of competitive models or "information games" that provide insights into the nature of this competition. The models capture differences between the type and maturity of the markets and differences in the behavioral assumptions about the nature of consumer demand for content. While these markets often have a "winner-takes-all" nature, we find a number of situations in which more than one player can survive at equilibrium.
Appears in Collections:IOMS: Information Systems Working Papers

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