Publication Type

Journal Article

Version

acceptedVersion

Publication Date

1-2015

Abstract

Really simple syndication (RSS) technology enables an alternative delivery mechanism for online content. Instead of waiting passively for users to pull online content out, websites can push it to potential users through RSS. This is expected to significantly affect user behavior, website profitability, and market equilibrium. This research uses an economic model to study the impact of RSS adoption and examine whether it increases a website’s profit and competitive advantage. The findings are intriguing: they demonstrate that RSS can either increase or decrease website profit. In a competitive context, RSS adoption can actually be a disadvantage; in some cases, it hurts the adopter but benefits the competitor. Moreover, under certain conditions, the first mover will be worse off when the competitor mimics its adoption decision, which discourages the earlier adoption and thus creates an obstacle to using RSS. Derivation of the adoption equilibria in sequential and simultaneous games shows that multiple market outcomes may result. Finally, regardless of whether or not a website operator adopts RSS, it will still benefit by increasing user awareness of RSS technology, but only up to a certain level. Once this critical awareness level has been reached, websites will not gain by continuing to promote RSS to users. As a whole, these results show how technology adoption will have an impact on firm performance and market outcome, and illustrate the complexity of technology adoption strategy in a competitive setting.

Keywords

competition, e-commerce, game theory, information economics, online content delivery, RSS

Discipline

Computer Sciences | Databases and Information Systems | E-Commerce

Research Areas

Information Systems and Management

Publication

Journal of Management Information Systems

Volume

32

Issue

1

First Page

291

Last Page

321

ISSN

0742-1222

Identifier

10.1080/07421222.2015.1029400

Publisher

Taylor & Francis (Routledge): SSH Titles

Copyright Owner and License

Author

Additional URL

https://doi.org/10.1080/07421222.2015.1029400

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