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Facilitating Adoption of Internet Technologies and Services with Externalities via Cost Subsidization

机译:通过成本补贴,促进通过外部性的互联网技术和服务

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This article models the temporal adoption dynamics of an abstracted Internet technology or service, where the instantaneous net value of the service perceived by each (current or potential) user/customer incorporates three key features: (i) user service affinity heterogeneity, (ii) a network externality, and (iii) a subscription cost. Internet technologies and services with network externalities face a “chicken-and-egg” adoption problem in that the service requires an established customer base to attract new customers. In this article, we study cost subsidization as a means to “reach the knee,” at which point the externality drives rapid service adoption, and thereby change the equilibrium service fractional adoption level from an initial near-zero level to a final near-one level (full adoption). We present three simple subsidy models and evaluate them under two natural performance metrics: (i) the duration required for the subsidized service to reach a given target adoption level and (ii) the aggregate cost of the subsidy born by the service provide. First, we present a “two-target adoption subsidy” that subsidizes the cost to keep the fraction of users with positive net utility at a (constant) target level until the actual adoption target is reached. Second, we study a special case of the above where the target ensures all users have positive net utility, corresponding to a “quickest adoption” subsidy (QAS). Third, we introduce an approximation of QAS that only requires the service provider adjust the subsidy level a prescribed number of times. Fourth, we study equilibria and their stability under uniformly and normally distributed user service affinities, highlighting the unstable equilibrium in each case as the natural target adoption level for the provider. Finally, we provide a fictional case study to illustrate the application of the results in a (hopefully) realistic scenario, along with a brief discussion of the limitations of the model and analysis.
机译:本文模拟了抽象的互联网技术或服务的时间采用动态,其中每个(当前或潜在)用户/客户所感知的服务的瞬时净值包含三个关键特征:(i)用户服务亲和异质性,(ii)网络外部性和(iii)订阅成本。网络外部性的互联网技术和服务面临着“鸡鸡蛋”的采用问题,因为该服务需要建立的客户群以吸引新客户。在本文中,我们将成本补贴作为“到达膝盖”的手段,目的是外部性能通过快速服务采用,从而将均衡服务分数采用水平从最初的近零水平变为最终近一级水平(全面采用)。我们提出了三种简单的补贴模型,并根据两种自然绩效指标评估它们:(i)补贴服务所需的时间达到给定的目标采用水平和(ii)服务提供的补贴的总费用。首先,我们提出了一个“双目标采用补贴”,可以在达到实际采用目标之前补贴将具有正净效用的净效用的成本降低,直到达到实际采用目标。其次,我们研究了上述特殊情况,目标确保所有用户都有正净净实用程序,对应于“最快采用”补贴(QAS)。第三,我们介绍了QAS的近似,只需要服务提供商调整补贴级别规定的次数。第四,我们在均匀和正常分布的用户服务亲和力下均衡及其稳定性,突出了每种情况下的不稳定均衡,作为提供者的自然目标采用水平。最后,我们提供了一个虚构的案例研究,以说明在(希望)现实情景中的结果的应用以及介绍模型和分析的局限性。

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