Vertical Differentiation and a Comparison of Online Advertising Models

• Main Authors: LIN, Mei, KE, Xuqing, WHINSTON, Andrew B.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2012
• Subjects: ad-supported business models; e-commerce; economic analysis; game theory; online advertising; vertical differentation.; Advertising and Promotion Management; Computer Sciences; E-Commerce; Management Information Systems
• Online Access: https://ink.library.smu.edu.sg/sis_research/1716; https://ink.library.smu.edu.sg/context/sis_research/article/2715/viewcontent/LinM2012JMISVerticalDiff_AFV.pdf
• Institution: Singapore Management University

Designing business models that take into consideration the role of advertising support is critical to the success of online services. In this paper, we address the challenges of these business model strategies and compare different ad revenue models. We use game theory to model vertical differentiat...