Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
6895013 | European Journal of Operational Research | 2018 | 16 Pages |
Abstract
We find that over time, the qualitative behavior of prices and associated number of users is the same, while advertising behaves in the opposite manner. If the costs of switching business models are considerable and/or the “addictiveness” of the game is low, history-dependent solutions emerge, where different initial situations result in different long-run business strategies. An intermediate level of game addictiveness can lead to thresholds in which the firm is indifferent between two distinct initial business strategies, even though both converge to the same strategy in the long run.
Keywords
Related Topics
Physical Sciences and Engineering
Computer Science
Computer Science (General)
Authors
Andrea Seidl, Jonathan P. Caulkins, Richard F. Hartl, Peter M. Kort,