Abstract
In this paper we propose a dynamic model of a software market for component reuse. We investigate the market dynamics using experiments with economically motivated human subjects. Our results suggest that the introduction of the software component market reduces production costs and increases vendor profits. The dynamic interactions in the component market helped vendors coordinate better their production decisions and resulted in production cost savings. The component market can thrive on a balance between competition and cooperation of software vendors. These experimental results could be applied with some modifications to the development of software products in general.
Paper Type
Event
Strategy Dynamics in Markets of Software Components
In this paper we propose a dynamic model of a software market for component reuse. We investigate the market dynamics using experiments with economically motivated human subjects. Our results suggest that the introduction of the software component market reduces production costs and increases vendor profits. The dynamic interactions in the component market helped vendors coordinate better their production decisions and resulted in production cost savings. The component market can thrive on a balance between competition and cooperation of software vendors. These experimental results could be applied with some modifications to the development of software products in general.
Recommended Citation
Shang, D., Lang, K., & Vragov, R. (2018). Strategy Dynamics in Markets of Software Components. In B. Andersson, B. Johansson, S. Carlsson, C. Barry, M. Lang, H. Linger, & C. Schneider (Eds.), Designing Digitalization (ISD2018 Proceedings). Lund, Sweden: Lund University. ISBN: 978-91-7753-876-9. http://aisel.aisnet.org/isd2014/proceedings2018/Transforming/7.