Valuation of Network Effects in Software Markets

A Complex Networks Approach
2010
ISBN: 978-3-7908-2813-9
Verlag: Physica-Verlag HD

Buch, Englisch, 309 Seiten, Previously published in hardcover, Format (B × H): 155 mm x 235 mm, Gewicht: 499 g

Reihe: Contributions to Management Science

The customer base is an important value driver of software companies and a reliable prediction of its development is fundamental for investment decisions. A particularity in software markets is that an individual’s purchasing decision is often influenced by other users’ choices. Although such customer network effects are evident, their quantitative assessment remain elusive with conventional approaches.

This book contributes to closing this gap by developing methods for measuring network effects and their implications for valuation in software markets. Based on the theory of complex networks the book reveals that such diffusion processes highly depend on structural properties of customer networks. Moreover, it depicts that such insights are contributions to improve the quality of valuations in software markets. But the implications of this research also comprise social and political aspects as they can be applied in order to prevent corporate failures in all network effect markets.

Zielgruppe

Research

Autoren/Hrsg.

Kemper, Andreas

Fachgebiete

• Wirtschaftswissenschaften Wirtschaftssektoren & Branchen Medien-, Informations und Kommunikationswirtschaft Informationstechnik, IT-Industrie
• Wirtschaftswissenschaften Betriebswirtschaft Unternehmensorganisation, Corporate Responsibility Unternehmenskooperationen, Joint Ventures

Inhaltsverzeichnis

Part I: Introduction.- Part II: Valuation in Modern Software Markets.- Part III: Modeling Network Effects in Software Markets.- Part IV: Modeling Customer Networks from a Complex Networks Perspective.- Part V: Summary, Implications, Limitations, and Outlook.