Management and Economics of IS

Management and Economics of IS

Cluster :

 eBusiness

 

Session Information

 : Sunday Oct 14, 16:30 - 18:00

 

Title: 

Management and Economics of IS

Chair: 

Dennis Kundisch,Professor, University of Paderborn, Warburgerstrasse 100, Paderborn, Germany, dennis.kundisch@wiwi.uni-paderborn.de

 

Abstract Details

 

Title: 

IT Investments and the Structure of Production

 

Presenting Author: 

Fengmei Gong,University of Calgary, Haskayne School of Business, Calgary, Canada, fgong@ucalgary.ca

 

Co-Author: 

Barrie Nault,University of Calgary, Haskayne School of Business, Calgary, Canada, nault@ucalgary.ca

 

Abstract: 

We examine the potential for determining how investments in information technology (IT) from an industry and its value chain partners affects the input-output structure of production.

 

 

Title: 

Valuation of Interdependent IT Projects - A Real Option Approach Considering Unhedgeable Risks

 

Presenting Author: 

Steffen Zimmermann,Assistant Professor, University of Innsbruck, Universitaetsstr. 15, Innsbruck 6020, Austria, Steffen.Zimmermann@uibk.ac.at

 

Co-Author: 

Marcel Mueller,PhD Student, University of Innsbruck, Universitaetsstr. 15, Innsbruck 6020, Austria, Marcel.Mueller@uibk.ac.at

 

 

Sebastian Stöckl,University of Innsbruck, Universitätsstr. 15, Innsbruck -- 6020, Austria, sebastian.stoeckl@uibk.ac.at

 

Abstract: 

To value interdependent IT projects, financial option pricing models like the Black-Scholes model (BSM) are frequently suggested. However, one major concern about applying these models for real options, is the assumption that all risks need to be hedged by a replicating portfolio. Thus, we present an enhancement of the BSM where we consider hedgeable and unhedgeable risks by two seperate stochastic processes. In doing so, we find out that the BSM undervalues real options systematically.

 

 

Title: 

Risk-aware SLA Design for Enterprise Information Systems

 

Presenting Author: 

Dirk Neumann,Professor, Albert-Ludwigs Universität Freiburg, Platz der Alten Synagoge 1, Freiburg 79085, Germany, dirk.neumann@is.uni-freiburg.de

 

Co-Author: 

Markus Hedwig,PostDoc, Albert-Ludwigs Universität Freiburg, Platz der Alten Synagoge 1, Freiburg 79085, Germany, markus.hedwig@is.uni-freiburg.de

 

 

Simon Malkowski,Georgia Institute of Technology, Atlanta GA, United States of America, s.malkowski@googlemail.com

 

Abstract: 

Since effective IT systems are necessary for business practices, growing operation costs necessitate the search for efficient delivery models. Cloud Computing provides a powerful alternative to traditional IT operation. Firms still have reservations about migrating to the Cloud due to the lack of binding SLA offerings. Service providers hesitate to offer binding SLAs as assessing economic risks is challenging. We present a model for SLA design for clouds to estimate the induced operational risk.

 

 

Title: 

Does It Pay Off to Bid Aggressively? An Empirical Study

 

Presenting Author: 

Philipp Herrmann,University of Paderborn, Warburger Straße 100, Paderborn, Germany, Philipp.Herrmann@wiwi.uni-paderborn.de

 

Co-Author: 

Dennis Kundisch,Professor, University of Paderborn, Warburgerstrasse 100, Paderborn, Germany, dennis.kundisch@wiwi.uni-paderborn.de

 

 

Mohammad Rahman,University of Calgary, 2500 University Dr. NW, Calgary AB T2N1N4, Canada, rahman@ucalgary.ca

 

Abstract: 

We empirically investigate the payoff of aggressive bidding in an electronic auction. We use a unique and very rich dataset containing actual market transaction data for approximately 7,000 pay-per-bid auctions. Our research design allows us to separate the effect of an aggressive bidding strategy to signal one’s own valuation from the effect of bidding aggressively due to impatience. We find a strong and significantly negative effect of aggressive bidding on the likelihood to win an auction.