Abstract | ||
---|---|---|
The utility obtained by a user from implementing a software product declines with time because the users expectations regarding the product are constantly evolving. A monopolist takes advantage of this fact and periodically updates the product with a new version to better satisfy user requirements. In this way, it gets repeat business for itself by selling the updated version to existing users. We find that the optimal time to upgrade declines with the products network externalities. At the beginning of the product life cycle, when the market is growing, the monopolist leverages incompatibility between the existing and updated versions to force existing users to upgrade more quickly. Further, the optimal time to introduce a new version is increasing in the rate of market growth. We also show when profit flows can increase by integrating two complementary software products. |
Year | DOI | Venue |
---|---|---|
2006 | 10.1109/HICSS.2006.458 | System Sciences, 2006. HICSS '06. Proceedings of the 39th Annual Hawaii International Conference |
Keywords | Field | DocType |
software upgrades,software product decline,user requirement,monopolist leverages incompatibility,market growth,product life cycle,network externality,new version,complementary software product,updated version,optimal time,internet,satisfiability,user interfaces,switches,user requirements,profitability,graphics,software systems,graphical user interfaces,operating systems,cost function | Product engineering,Software engineering,Computer science,Network effect,Operations research,Knowledge management,Software system,Upgrade,Software,User interface,Product lifecycle,User requirements document | Conference |
Volume | ISSN | ISBN |
8 | 1530-1605 | 0-7695-2507-5 |
Citations | PageRank | References |
1 | 0.36 | 2 |
Authors | ||
2 |
Name | Order | Citations | PageRank |
---|---|---|---|
Amit Mehra | 1 | 85 | 5.61 |
Abraham Seidmann | 2 | 704 | 112.90 |