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| Author: | Gundepudi, P. Rudi, N. Seidmann, A. |
| Title: | Forward Versus Spot Buying of Information Goods |
| Journal: | Journal of Management Information Systems
2001 : FALL, VOL. 18:2, p. 107-131 |
| Index terms: | INFORMATION INFORMATION TECHNOLOGY BUYING |
| Language: | eng |
| Abstract: | Several information goods, such as movie distribution rights or newspapers, are sold either at spot prices, or through forward subscription buying. The authors' paper considers a firm that offers an information good through spot buying, forward buying at a reduced price, or a combination of the two. The time lag between forward buying and spot buying brings about an uncertainty in a consumer's reservation price for the good at the time of advance purchase. The authors propose a consumer decision-making model that captures this fundamental feature and provides interesting insights into the key elements of consumer behavior. |
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