Research

America OnLine’s Internet Access Service: How to Deter Unwanted Customers
Electronic Commerce Research and Applications, 2005

Some dial-up Internet access providers, such as the market leader America OnLine (AOL), require customers to install proprietary connection software to use their service. This is puzzling, because while the software helps certain users, it creates disutility for others (especially expert users and early adopters of Internet service). Why, then, does AOL insist on this connection manager? Why not also offer a standardized service with Internet access and AOL-managed service to the power users?

This paper by Professor Hemant Bhargava and co-author Juan Feng of the University of Florida postulates that AOL wants to limit sales to unprofitable customers such as IT-savvy expert users. In the absence of other viable mechanisms for screening out such customers, AOL’s product design may be viewed as a smart approach to solve the adverse selection problem: the connection manager reduces valuations of IT-savvy users, making the service unattractive to them. A second possibility is that AOL considers IT-savvy users undesirable because their presence might cause novice users to learn to manage without AOL’s proprietary software; these customers might switch to the cheaper access-only option in future periods.

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News Release

UC Davis Graduate School of Management partners with Lawrence Livermore and Sandia National Labs to drive technologies from lab to market

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(Davis, Calif.) – With a joint goal of speeding the transfer of new technologies from the laboratory to the commercial marketplace, the UC Davis Graduate School of Management, Lawrence Livermore National Laboratory and Sandia National Laboratories have announced a new partnership for researchers to develop their entrepreneurial skills.

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Agilent Technologies’ Electronic Measurement Group is a $3.6 billion business that over the past decade has seen a dramatic shift in its customer base from U.S., and Western European customers to predominantly Asia-based customers. Today, the majority of the division’s revenues are generated outside of the U.S., with an increasing concentration in China.

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UC Davis Part-Time MBA in Top 8%, Full-Time MBA in Top 9%
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(Davis, CA) — The UC Davis Graduate School of Management’s full-time MBA program has been ranked among the top six percent of AACSB International-accredited programs nationwide, according to U.S. News & World Report’s latest graduate business school rankings released today.