Strategy for Information Markets/Glossary

Club GoodClub Good a good/service that is excludable and non-rivalrous Common GoodCommon Good a good that is rivalrous and excludable, such as fish stocks, timber, or coal Compatibilitycompatibility the ability of information goods to perform together productively Complementcomplement a good with a negative cross elasticity of demand, meaning the good's demand is increased when the demand of another good is decreased Coordination Gamecoordination game a class of games with multiple pure strategy Nash Equlibria in which players choose the same or corresponding strategies Copyrightcopyright a form of legal protection of authors and creators of "original works of authorship" which are fixed in specific forms of expression Copyright Infringementcopyright infringement any violation of the rights secured by a copyright DarknetDarknet any private, distributed P2P filesharing network, where connections are made only between trusted peers using non-standards protocols and ports Demand Equilibriumdemand equilibrium state in which market supply and demand balance each other and prices become stable Digital Rights Management digital rights management a class of access control technologies that are used by hardware manufacturers, publishers, copyright holders, and individuals with the intent to limit the use digital contact undesired by the content provider Discrete Choicediscrete choice gives the consumer options between two or more discrete alternatives E-Commercee-commerce buying and selling of products or services over electronic systems. Most major retailers now have websites, and some, such as Amazon, don't even have brick-and-mortar stores anymore and hold all transactions online Economies of Scaleeconomies of scale the cost advantages that an enterprise obtains due to expansion Demand Sidedemand side when a good/service has added value by having more consumers using the good/service supply sidesupply side when a good/service has a decreased marginal cost with each added consumer Elasticity of demanddemand-elasticity the responsiveness of quantity demanded to a change in something (usually prices) price inelastic Demand is price inelastic if a change in prices will have a relatively small effect on the quantity demanded (if ). Excludable Goodexcludable good a good that is possible to prevent people from accessing it Experience Goodexperience good a product or service where product characteristics, such as price or quality, are difficult to observe in advance, but that can be ascertained upon consumption Externalityexternality a cost or benefit not transmitted through prices that is incurred by a party who did not agree to the action causing the cost or benefit First Mover Advantagefirst mover advantage rewards the first supplier to bring a new good or service to the market Forking (the standard)forking the division of a network into two or more parallel networks Freemiumfreemiumonline video games that do not require a time-specific subscription in order for the consumer to take part. Often users are granted the option to expand the gameplay through purchase of advanced content of the game Google Adsensegoogle adsensean advertising prgram that can give website owners advertising revenue by placing advertisements on their own websites Idle Screen Advertisingidle screen advertising through a third party, utilizers are offered a discount on their phone bill in exchange for the agreement to allow advertisements to run on their screen while their phone is idle Information Goodinformation good a good which can be recreated with minimal marginal cost and that cannot be used up Intellectual Propertyintellectual propertyprotects the rights over the product for a set amount of time. This allows the developer a chance to earn enough profit to cover the development costs, after which the work becomes a public domain Learning Economies learning economies knowledge is the crucial resource and learning is the most important process Localizationlocalization the process in which a business adapts their product or service for use in the specific market being targeted Lock-inlock-in when the consumer has too much negative gain by way of process of switching to make it worthwhile to in fact change their format or upgrade Individual Lock-inindividual Lock-in: when a new product is introduced to the market, and consumers left with inferior products must decide whether or not it is worth it for them to buy the new technologya situation that is realized when the consumer's individual switching costs are high enough to discourage and individual from changing product or service provider Systemic (collective lock-incollective lock-in when a new product is introduced to the market, and consumers left with inferior products must decide whether or not it is worth it for them to buy the new technologySystemic (Collective) Lock-in- the market situation in which it is unprofitable for one consumer or firm to switch products unless all or most other firms or consumers also adopt the same product Micropaymentmicropayment a financial payment system in which a low per-unit price is offered to consumers, enticing consumers to purchase multiple amounts or items Natural Monopolynatural monopoly a condition on the cost-technology of an industry whereby it is most efficient for production to be concentrated in a single firm Negative Feedbacknegative feedback when the output of a system acts to opposite changes to the input of the system Network Externalitynetwork externalityeffect that one user of a good or service has on the value of that product to other people. Effects can be good or bad. Openness Strategyopenness strategy Patentpatent permits that anything created using a labor and/or cost-intensive development procedure will be guaranteed the right to exist without competition until the developer can profit from their own creation Path-Dependencepath dependenceprocess in which a set of events can determine the final market outcome; similar to the 'bandwagon effect' Pecuniary Externalitiespecuniary externalities operates through prices rather than through real resource effects Playstation Network (PSN)playstation network an online multiplayer gaming and digital media delivery service provided/run by Sony Computer Entertainment Portalsportals most generally considered to be websites that provide access to information, services, and other websites Positive Feedback positive feedbacka situation where some effect causes more of itself; the strong get stronger, the weak get weaker Price Discriminationprice discriminationa legal attempt by a producer or seller to charge a different price to various groups or individuals for the same product, based on consumer willingness to pay Bundlingbundling grouping products together to make the entire package more valuable than the individual products by themselves International Price Discriminationinternational price discrimination price discrimination in which identical or nearly identical products are sold for differing prices depending on where in the world they are sold Versioningversioning used by software makers, allowing them to slightly change their product and sell it to different groups at different prices, based on which version they want Price takerprice taker a buyer or seller in a competitive market who is unable to affect the market price Private Goodprivate good a good that is excludable and rivalrous; examples could be food, clothing, or cars Public Goodpublic good a good that is non-rivalrous and non excludable. Examples include air, national defense, or public parks Malwaremalware short for malicious software, malware is software designed to disrupt computer operation, gather sensitive information, or gain unauthorized access to computer systems. Recently, analysts have started predicting that cell phones will be targeted with malware the same way the PC market has Two-Part Tariff two-party tariff set a base cost for consumers, then provide the good or service at a per unit price Regional Lockoutregional lockout the programming practice, code, or physical barrier used to prevent the playing of media designed for a device from the country where it is marketed on the same version of the decide marketed in a different country Search Engine Optimizationsearch engine optimization the process of increasing the visibility of a website by obtaining a search result from a search engine Secondary Gaming Marketssecondary gaming markets markets which function in an online game outside the developer's intention for the game. These markets involve exchanges of real monetary funds between consumers for in-game goods or game-related goods Gold Farmersgold farmers players whose job is to collect in-game currency in popular games and sell said currency for real money over the internet Power Levelingpower leveling the disclosure of a user's name and password to a third party in order to advance a characters skill level or accumulate in game wealth for the player Selling Accountsselling accountsselling an online game account for real money Sponsorsponsorindividual or group that provides support an direction for a market Standardstandard Switching Costsswitching costs when a new product is introduced to the market, and consumers left with inferior products must decide whether or not it is worth it for them to buy the new technology Systemsystem Tippy Marketstippy markets when a market can easily tip in favor of oen firm over the others. Causes be a lack of desire for variety, strong demand-side economies of scale, and strong supply-side economies of scale Two-Sided Marketstwo-sided marketsa market with two distinct user groups that provide each other with network benefits. For example, markets include credit cards that benefit cardholders and merchants Value Mappingvalue mapping the act of identifying each individual process and timeline that it will take to get the product from the business to the consumer Versioningversioning the creation and marketing different versions of a given product that are catered to match differing values of different consumer demographics Virtual Economyvirtual economy an emergent economy exiting in a virtual persistent world, usually exchanging virtual goods in the context of an internet game Persistent Worldpersistent world Players are given a set of fiscal and monetary rules in which players are able to acquire wealth and items as they interact with one another and engage in the virtual world Session Basedsession based users must seek to acquire new goods or inventory through an in-game purchase, which does not carry over into additional games/sessions Vaporwarevaporware a product, typically computer hardware or software, that is announced to the general public but is never actually released nor officially cancelled X-Box Livex-box live online multiplayer gaming and digital media delivery service created and operated by Microsoft Corporation References