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10-29 Professor Jianqing Chen:Heterogeneous Profit Foci as Drivers of Compatibility Decisions ,2020.

Speaker:ProfessorJianqing Chen(University of Texas, Dallas)

Time: October 29,2020 10:30-12:00

Tencent Meeting: 451 319 865

Introduction:

We study compatibility decisions of two competing platform owners that generate profits through both hardware sales and royalties from content sales.We consider a game-theoretic model in which the platform hardware may offer different standalone utility to users who have different preferences over the two platforms.We find that incentives to establish one-way compatibility—the platform owner with smaller standalone value grants access to its proprietary content application to users of the competing platform—can arise from the difference in their profit foci.As the difference in the standalo ne utility increases,royalties from content sales become less important to the platform owner with greater standalone value but become more important to the other platform owner.Compatibility can thus increase asymmetry between the platform owners'profit foci and,given a sufficiently large difference in the standalone utility,yields greater profits for both platform owners.We further show that social welfare is greater under one-way compatibility than under incompatibility.

Speaker Profile:

Jianqing Chen is a professor in information systems at the Jindal School of Management at the University of Texas at Dallas.He received his Ph.D.from McCombs School of Business at the University of Texas at Austin and his Bachelor and Master from Tsinghua University.His current research focuses are:(1)platform business models;(2)social media and user-generated content;(3)search engine advertising; and (4)supply chain risk management.His papers have been published in top academic journals across different fields, including Information Systems Research, MIS Quarterly, Management Science, Journal of Marketing Research, Journal of Marketing, Production and Operations Management, and Journal of Management Information Systems.He received ISS Sandra A.Slaughter Early Career Award of INFORMs in 2016and won Dean's Award for "Outstanding New Scholar" in 2009.In Tsinghua, he received the highest student honor---Tsinghua Top-Grade Scholarship.He received the Best Paper awards for the Fifteenth Conference on Information Systems and Technology (CIST) in 2010 and for the China Summer Workshop on Information Management (CSWIM) in 2007,2012, and 2015. He is current an Associate Editor of Information Systems Research, a Senior Editor of Production and Operations Management, and an Associate Editor of Journal of Electronic Commerce Research and Business & Information Systems Engineering.He co-chaired CSWIM 2016, and co-chaired E-Business Cluster of INFORMs in 2013and co-chaired Information Systems Cluster of INFORMs in 2014.Currently,he is the president of the E-Business section of INFORMs.

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