JSOM Faculty Research
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Browsing JSOM Faculty Research by Author "0000 0000 4526 9637 (Jacob, VS)"
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Item Postrelease Testing And Software Release Policy For Enterprise-level SystemsJiang, Z.; Sarkar, Sumit; Jacob, V. S. (Varghese S.); 0000 0000 4526 9637 (Jacob, VS); 94021959 (Jacob, VS)Prior work on software release policy implicitly assumes that testing stops at the time of software release. In this research, we propose an alternative release policy for custom-built enterprise-level software projects that allows testing to continue for an additional period after the software product is released. Our analytical results show that the software release policy with postrelease testing has several important advantages over the policy without postrelease testing. First, the total expected cost is lower. Second, even though the optimal time to release the software is shortened, the reliability of the software is improved throughout its lifecycle. Third, although the expected number of undetected bugs is higher at the time of release, the expected number of software failures in the field is reduced. We also analyze the impact of market uncertainty on the release policy and find that all our prior findings remain valid. Finally, we examine a comprehensive scenario where in addition to uncertain market opportunity cost, testing resources allocated to the focal project can change before the end of testing. Interestingly, the software should be released earlier when testing resources are to be reduced after release.Item Pricing Models for Online Advertising: CPM vs. CPC(2012-09) Asdemir, K.; Kumar, Nanda; Jacob, V. S. (Varghese S.); 0000 0000 4526 9637 (Jacob, VS); 94021959 (Jacob, VS)Online advertising has transformed the advertising industry with its measurability and accountability. Online software and services supported by online advertising is becoming a reality as evidenced by the success of Google and its initiatives. Therefore, the choice of a pricing model for advertising becomes a critical issue for these firms. We present a formal model of pricing models in online advertising using the principal-agent framework to study the two most popular pricing models: input-based cost per thousand impressions (CPM) and performance-based cost per click-through (CPC). We identify four important factors that affect the preference of CPM to the CPC model, and vice versa. In particular, we highlight the interplay between uncertainty in the decision environment, value of advertising, cost of mistargeting advertisements, and alignment of incentives. These factors shed light on the preferred online-advertising pricing model for publishers and advertisers under different market conditions. © 2012 INFORMS.