Economics of Immediate Gratification in Mobile Commerce

Economics of Immediate Gratification in Mobile Commerce

Kerem Tomak (University of Texas at Austin, USA)
Copyright: © 2005 |Pages: 21
DOI: 10.4018/978-1-59140-444-6.ch009
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In this chapter we attempt to build a bridge between mobile commerce and the emerging field of behavioral economics. We first provide examples from mobile commerce and link them to behavioral economics. We then build a stylized model to assess the impact of hyperbolic discounting on the profit-maximizing behavior of a monopolist firm. We find that the monopolist makes lower profits compared to exponential discounting consumers for low levels of (positive) network externalities. As the network externalities increase, first-period prices increase, second period prices decrease and the profits increase in equilibrium.

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Table of Contents
Kerem Tomak
Chapter 1
David Dranove, Neil Gandal
In April 1997 a consortium of hardware manufacturers and movie studios launched the DVD format. By that fall, electronics retailing giant Circuit... Sample PDF
Surviving a Standards War: Lessons Learned from the Life and Death of DIVX
Chapter 2
Kevin Zhu
This chapter explores the private and social desirability of information transparency of a business-to-business (B2B) electronic market that... Sample PDF
Information Transparency Hypothesis: Economic Implications of Information Transparency in Electronic Markets
Chapter 3
Qizhi Dai, Robert J. Kauffman
New technological innovations have made it possible for new intermediaries to create value in business processes that involve the procurement of... Sample PDF
Partnering for Perfection: An Economics Perspective on B2B Electronic Market Strategic Alliances
Chapter 4
Nelson Granados, Alok Gupta, Robert J. Kauffman
Internet-based selling offers firms many new opportunities regarding the strategies for design of mechanisms to support consumer transactions. This... Sample PDF
Transparency Strategy in Internet-Based Selling
Chapter 5
Kexi Zhao, Michael J. Shaw, Mu Xia, Chandrasekar Subramaniam
This chapter analyzes the structural dynamics of multilateral business-to-business (B2B) relationships based on game theoretical approach. It... Sample PDF
Structure Evolution of B2B Enterprise Networks
Chapter 6
Xiaorui Hu, Zhangxi Lin, Han Zhang
Escrow is an emerging trust service in online consumer-to-consumer auction markets in preventing Internet fraud. This chapter studies the effect of... Sample PDF
Perceived Risk and Escrow Adoption in Online Consumer-to-Consumer Auction Markets: An Economic Analysis
Chapter 7
Pekka Tsupari, Petri Rouvinen
This chapter studies the joint effects of inter-firm collaboration and electronic business on firm profitability primarily in Finnish manufacturing.... Sample PDF
Inter-Firm Collaboration and Electronic Business: Effects on Profitability in Finland
Chapter 8
Ranjan Dutta, Jonathan J. Koehler
In this chapter, we draw on the behavioral economics literature to identify the conditions under which consumers would prefer one of three pricing... Sample PDF
Pay Now or Later? The Impact of Temporal Separation of Payments and Consumption on Consumer Payment Preferences
Chapter 9
Kerem Tomak
In this chapter we attempt to build a bridge between mobile commerce and the emerging field of behavioral economics. We first provide examples from... Sample PDF
Economics of Immediate Gratification in Mobile Commerce
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