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Selected Case

published: 28 Jun 2019

  • Topic: Operations
  • Region: Asia

Abstract:
This case showcases how access- and ownership-based business models segment the market based on useage heterogeneity, and how pricing equilibrium emerges from the resulting duopoly. It also shows, counter-intuitively, that access-based entrants may intentionally benefit from choosing “inferior” technology to soften price competition from ownership-based incumbents, even when the cost of technology is ignored.

Keywords:
Pricing, Access Versus Ownership, Segmentation, Servicization


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