1 point 5 According to Machine, Platform, Crowd When indirect (cross-platform) network effects are important, platforms should try to get all their revenue from the less-elastic-demand side of the platform while letting the more-elastic sidejoin for free Platforms threaten to commoditize products and to capture more of the surplus than do product creators Platforms allow smaller and newer product producers to access the market All of the above None of the above Besides using its system to provide a better user experience, Uber's key surplus-enhancing innovation was Not having to own cars Circumventing regulations Tapping into a new part-time labor force willing to work for less Operating in multiple cities Offering SUVs and other options Which of the following would NOT be a reason to build a specialized application on top of an existing more-general application (rather than writing it from scratch in a low-level programming langu age)? Better fit and faster performance Smaller knowledge gap between coders and domain experts Spread xed costs of development with more users Spread maintenance costs across more users Easier to nd programmers to maintain it 1 point When machine-intelligence prediction accuracy improves with experience, data-dominance strategies can still fail to gain sustainable competitive advantage if accu racy improves too quickly with experience accu racy improves too slowly with experience the incremental value of accuracy falls too quickly with accuracy all of the above none of the above 1 point The growing use of cloud technology to provide IT infrastructure as a service Promotes the sale of computer hardware to corporate customers Helps smaller rms use IT to compete with larger rms Promotes device-resident solutions All of the above None of the above 6 1 point IBM's chances to succeed with Watson are enhanced by O its superior engineering talent in Al technologies Watson's power as a general Al capable of solving problems no human could IBM's relative ability to scrape data off the web and from general Internet users to provide examples for Watson to learn from IBM's superior relationships with large corporate customers in different vertical markets O good press from the analyst community 7 1 point Developing its own user-friendly application programming interface (API) is especially important for O a platform running widely used open-source software a platform for delivering a standard service from providers to users (e.g. streaming video or ride-hailing) a platform delivering differentiated services from providers to users (e.g. mobile games) all of the above OO none of the aboven '1 point 5 Two rms compete to provide a service using predictions from their machine learning systems Demand for the product is conned to a xed number of users, all of whom buy as long as they receive an offer, V-P, of at least zero. Total surplus created per transaction is equal to $500 minus (the rm's prediction error-rate) * (cost of an error), or S = 500 - p*y where p is the error rate (distinguishing from P which is price) and y is the cost of an error. Error rates are a function of the experience a rm has had; the more experience, x, the lower the error. In particular, suppose p = 200/x"2 and y = 10,000 If Firm A has XA = 100 and Firm B has X3 = 70.72, then A has a competitive advantage of about 100 A has a competitive advantage of about 200 B has a competitive advantage of about 50 B has a competitive advantage of about 100 Neither rm has a competitive advantage n 1 point Q (Hint: Recall how prot under tough price competition is affected by competitive advantage and how that differs from soft price competition with a common offer.) Suppose a change in government regulations is proposed that would reduce the cost of an error, y, from 10,000 to 8,000. Firm A would Oppose the change if it expected to be in soft price competition (split the market) with Firm B but support it if it expected to be in tough price competition (rm with CA knocks the other out) Oppose the change if it expected to be in tough price competition with Firm B but support it if it expected be in soft price competition Support the change no matter what Oppose the change no matter what Not care about the change 1point (Hint: Recall what the video lectures said about datadominance strategies and how they might depend on the rate of learning as a function of experience.) Suppose we were in the situation of Question 8 and a government research program were proposed that could increase the learning rate for machine intelligence so that now p = 200/x"3. Firm Awould Oppose the program if it expected to be in soft price competition (split the market) with Firm B but support it if it expected to be in tough price competition (rm with CA knocks the other out) Oppose the program if it expected to be in tough price competition with Firm B but support it if it expected be in soft price competition Support the program no matter what Oppose the program no matter what Not care about the program