Kuei-Yuan Cheng ,
Yao-Hsien Lee ,
Mei-Yu Lee
doi: http://dx.doi.org/10.21511/ppm.14(2-2).2016.02
Problems and Perspectives in Management
Volume 14, 2016 Issue #2 (cont. 2) pp. 272-276 Views: 987 Downloads: 156 TO CITE
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
