Price competition between shrink-wrap software and cloud service firms under a stochastic model
-
DOIhttp://dx.doi.org/10.21511/ppm.14(2-2).2016.02
-
Article InfoVolume 14 2016, Issue #2 (cont. 2), pp. 272-276
- 987 Views
-
156 Downloads
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
view full abstract
Close
Problems and Perspectives in Management