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| Author: | Dewan, S. |
| Title: | Pricing computer services under alternative control structures: tradeoffs and trends |
| Journal: | Information Systems Research
1996 : SEP, VOL. 7:3, p. 301-307 |
| Index terms: | INFORMATION TECHNOLOGY COMPUTER SERVICES ECONOMICS |
| Language: | eng |
| Abstract: | This paper extends the analysis of the long-run pricing and capacity decision problem for shared computer services by Dewan and Mendelson (1990) and makes two further contributions. First, the author shows that simple marginal capacity cost pricing is often optimal in the absence of private user information, and it outperforms cost recovery and profit center pricing methods. Second, the author provides insights into the implications of declining computing costs on the tradeoff between capacity costs and user time. |
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