Strategy for Information Markets/Glossary

Club Good
a good/service that is excludable and non-rivalrous
Common Good
a good that is rivalrous and excludable, such as fish stocks, timber, or coal
Compatibility
the ability of information goods to perform together productively
Complement
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 Game
a class of games with multiple pure strategy Nash Equlibria in which players choose the same or corresponding strategies
Copyright
a form of legal protection of authors and creators of "original works of authorship" which are fixed in specific forms of expression
Copyright Infringement
any violation of the rights secured by a copyright
Darknet
any private, distributed P2P filesharing network, where connections are made only between trusted peers using non-standards protocols and ports
Demand Equilibrium
state in which market supply and demand balance each other and prices become stable
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 Choice
gives the consumer options between two or more discrete alternatives
E-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 Scale
the cost advantages that an enterprise obtains due to expansion
  • Demand Side
    when a good/service has added value by having more consumers using the good/service
  • supply side
    when a good/service has a decreased marginal cost with each added consumer
Elasticity of demand
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 |\epsilon| < 1).
Excludable Good
a good that is possible to prevent people from accessing it
Experience 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
Externality
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 Advantage
rewards the first supplier to bring a new good or service to the market
Forking (the standard)
the division of a network into two or more parallel networks
Freemium
online 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 Adsense
an advertising prgram that can give website owners advertising revenue by placing advertisements on their own websites
Idle 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 Good
a good which can be recreated with minimal marginal cost and that cannot be used up
Intellectual Property
protects 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
knowledge is the crucial resource and learning is the most important process
Localization
the process in which a business adapts their product or service for use in the specific market being targeted
Lock-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-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-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
Micropayment
a financial payment system in which a low per-unit price is offered to consumers, enticing consumers to purchase multiple amounts or items
Natural 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 Feedback
when the output of a system acts to opposite changes to the input of the system
Network Externality
effect 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 Strategy
Patent
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-Dependence
process in which a swet of events can determine the final market outcome; similar to the 'bandwagon effect'
Pecuniary Externalities
operates through prices rather than through real resource effects
Playstation Network (PSN)
an online multiplayer gaming and digital media delivery service provided/run by Sony Computer Entertainment
Portals
most generally considered to be websites that provide access to information, services, and other websites
Positive Feedback
a situation wehre some effect causes more of itself; the strong get stronger, the weak get weaker
Price Discrimination
a 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
  • Bundling
    grouping products together to make the entire package more valuable than the individual products by themselves
  • International 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
  • Versioning
    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 taker
a buyer or seller in a competitive market who is unable to affect the market price
Private Good
a good that is excludable and rivalrous; examples could be food, clothing, or cars
Public Good
a good that is non-rivalrous and non excludable. Examples include air, national defense, or public parks
Malware
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
set a base cost for consumers, then provide the good or service at a per unit price
Regional 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 Optimization
the process of increasing the visibility of a website by obtaining a search result from a search engine
Secondary 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 Farmers
    players whose job is to collect in-game currency in popular games and sell said currency for real money over the internet
  • Power 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 Accounts
    selling an online game account for real money
Sponsor
individual or group that provides support an direction for a market
Standard
Switching 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
System
Tippy 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 Markets
a 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 Mapping
the act of identifying each individual process and timeline that it will take to get the product from the business to the consumer
Versioning
the creation and marketing different versions of a given product that are catered to match differing values of different consumer demographics
Virtual Economy
an emergent economy exiting in a virtual persistent world, usually exchanging virtual goods int he context of an internet game
  • Persistent 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 Based
    users must seek to acquire new goods or inventory through an in-game purchase, which does not carry over into additional games/sessions
Vaporware
a product, typically computer hardware or software, that is announced to the general public but is never actually released nor officially cancelled
X-Box Live
online multiplayer gaming and digital media delivery service created and operated by Microsoft Corporation

ReferencesEdit

Last modified on 14 May 2012, at 21:18