Classroom Companion: Business
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Introduction to Digital Economics
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Chapter 18 · Digital Market Modeling 277 18 18.6 Conclusions This chapter shows how some important observations in the digital economy can be substantiated using simple mathematical tools. The solution of the Bass equation pinpoints some strategic dilemmas: 5 If all customers are innovators, then the latency period is short; however, the time to capture market shares above 50% is long. This implies that the total market is smaller than anticipated. 5 If all customers are imitators, the latency period is long; however, the time to capture market shares above 50% is short. The product may then be prema- turely withdrawn from the market. The differential equations for markets with competitors show that if there is stimu- lated customer churning between the competitors, the market ends up as a de facto monopoly. Which competitor captures the whole market is arbitrary depending on events during the evolution of the market. The equation also shows that there are cases where the market is shared between several competitors. In these cases, the churning is spontaneous and independent of the market shares of the competitors. The form of the differential equations for interactive online games shows that strategy to extend the lifetime of the game is to reduce the rate by which players leaves the game and increasing the rate by which earlier players rejoins the game. The strategy is then to identify how these rates can be manipulated, for example, by adding new features and improving other aspects of the game. Potential adopters Adopters Innovators Imitators New adopters Fig. 18.9 System dynamic model for the Bass equation. (Authors’ own figure) 18.6 · Conclusions 278 18 Finally, more complex markets can be analyzed using system dynamics. In these models, the market parameters can be constants, depend on time, be discrete, and so on. Download 5.51 Mb. Do'stlaringiz bilan baham: 
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