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  1. Proceedings of the 2006 international workshop on Economics driven software engineering research (EDSER '06)
  2. An economic model for market entry strategies
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Effort estimation by characterizing developer activity
Introduction to the $8_{th}$ international workshop on economics-driven software engineering research
Cost estimation for global software development
An extension of COCOMO II for the B-Method
Process family points versus (full) function points
An approach to model the return on investment of organization-wide improvement projects using the concept of external effects
Simulation for business value and software process/product tradeoff decisions
An economic model for market entry strategies
Online pricing for web service providers
Resource allocation among development phases: an economic approach
Game theory perspectives on client: vendor relationships in offshore software outsourcing

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An economic model for market entry strategies

Content Provider ACM Digital Library
Author Berghout, Egon Sassenburg, Hans
Abstract In unpredictable software manufacturer organizations, it is difficult to determine when a software product will be released, the features the product will have, the associated development costs or the resulting product quality. The NPVI-method is presented, enabling a software manufacturer to compare and evaluate different release or market entry strategies. However, information has its price in time and cost, forcing decision-makers to make a trade-off between search costs and opportunity costs. In addition, decision-makers simplify the real world, as they cannot escape the diverse psychological forces that influence individual behaviour. Combined with the potential presence of sources of conflict, this often leads to the situation where different stakeholders experience difference aspiration levels. As such, satisficing behaviour where decision-makers try to find consensus and choose a satisfactory release alternative is a good characterisation of the software release decision-making process as found in practice. Successful adoption of the NPVI-method requires that software manufacturers reach the zone of cost effectiveness for the perfection of information; a zone where numbers make business sense, and can be convincingly used to support informed decision-making.
Starting Page 31
Ending Page 36
Page Count 6
File Format PDF
ISBN 1595933964
DOI 10.1145/1139113.1139122
Language English
Publisher Association for Computing Machinery (ACM)
Publisher Date 2006-05-27
Publisher Place New York
Access Restriction Subscribed
Subject Keyword Decision-making Optimal release time Maximizing behaviour Optimizing behaviour Satisficing behaviour
Content Type Text
Resource Type Article
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