Competition of multiplatform firms: Implications for the Internet of Things.

The Internet of Things (IoT) technology trend is transforming business and society. This creates a need to understand strategic behavior in the consumer IoT, where firms tend to offer multiple platform devices, and new generations of devices are introduced frequently. We propose a novel analytical model that formalizes the concept of a multiplatform firm that offers a system of platforms, such as a smartphone, and a new platform device, such as a smartwatch, and orchestrates a multiplatform ecosystem. The analysis shows how a platform design decision, like offering a new standalone device, affects consumer choices and market outcomes. We identify two classes of new devices that matter, and show when a new platform device may disrupt the smartphone market. Moreover, we characterize conditions under which it is profitable for a vendor to make its new platform device look and feel more like its smartphone. Overall, we provide insights into how multiplatform firms differ from platform firms. We identify future research opportunities on the economics of consumer IoT and multiplatform ecosystems.

Responsible users and platform competition: A computational model.

Corporate Social Responsibility (CSR) is an increasingly important topic in business, especially in the context of digital platforms where consumers and policymakers care about the social responsibility of platforms. This paper introduces the concept of responsible users, defined as users who make decisions considering their CSR preferences in platform settings. However, how responsible users may affect platform strategic behavior and competition is unclear. Therefore, we propose a computational model of platform price competition that considers the presence of responsible users. We find that CSR preferences have pro-competitive effects that reduce prices and profits in equilibrium. However, this effect depends on how large CSR preferences can be. We also explore several market asymmetries and clarify their implication for platform price structures and profits. Furthermore, we find that it only matters that users express their CSR preferences, regardless of how those preferences are generated. By integrating the responsible user concept into platform competition, our work contributes to both platform competition and CSR literature. We discuss practical implications for platform users and managers and future research opportunities.

A computational model of the competitive effects of ESG.

Environmental and social initiatives within firms, commonly grouped under the ESG term, have attracted significant business interest. However, the mechanism that links ESG investment to firm performance is unclear. We develop a computational model that helps clarify the competitive effects of ESG. In our model, ESG investment attracts consumers, but it can have additional effects on companies, such as reducing production costs, increasing product value, or both. Computational experiments show that ESG intensifies competition when it has such additional effects in addition to attracting consumers. However, ESG can lead to a winner-take-all dynamic in which a firm with an initial advantage dominates the market. Moreover, firms can use strategic disclosure of information to reduce their ESG investments, softening competition. This research contributes to the ESG literature by explaining the strategic impact of firms' ESG investments and the conditions under which firms can do well by doing good in a competitive setting.

Will colleges survive the storm of declining enrollments? A computational model.

The approaching decline in the U.S. college-age population, sometimes referred to as a "demographic storm," has been identified as an existential threat to the future of American colleges and universities. This article conducts a model-driven analysis of three plausible college-level responses to declining applications. It draws on systems theory to conceptualize a tuition-dependent college as a complex service system and to develop a system dynamics model that captures key causal interrelationships and multiple feedback effects between faculty, facilities, tuition revenue, financials, reputation, and outcomes. Simulations with the college model suggest that common solutions such as reducing faculty or adding campus facilities may improve the college's short-term financial position, but they are insufficient to ensure its long-term viability. This model contributes to the research literature on the economics of higher education, and model-driven academic management and strategy. It also provides useful implications and insights that can inform policy-makers and college leaders.

The state and profile of open source software projects in health and medical informatics.

PURPOSE: Little has been published about the application profiles and development patterns of open source software (OSS) in health and medical informatics. This study explores these issues with an analysis of health and medical informatics related OSS projects on SourceForge, a large repository of open source projects. METHODOLOGY: A search was conducted on the SourceForge website during the period from May 1 to 15, 2007, to identify health and medical informatics OSS projects. This search resulted in a sample of 174 projects. A Java-based parser was written to extract data for several of the key variables of each project. Several visually descriptive statistics were generated to analyze the profiles of the OSS projects. RESULTS: Many of the projects have sponsors, implying a growing interest in OSS among organizations. Sponsorship, we discovered, has a significant impact on project success metrics. Nearly two-thirds of the projects have a restrictive license type. Restrictive licensing may indicate tighter control over the development process. Our sample includes a wide range of projects that are at various stages of development (status). Projects targeted towards the advanced end user are primarily focused on bio-informatics, data formats, database and medical science applications. CONCLUSION: We conclude that there exists an active and thriving OSS development community that is focusing on health and medical informatics. A wide range of OSS applications are in development, from bio-informatics to hospital information systems. A profile of OSS in health and medical informatics emerges that is distinct and unique to the health care field. Future research can focus on OSS acceptance and diffusion and impact on cost, efficiency and quality of health care.