Valuation of Network Effects in Software Markets

A Complex Networks Approach

  • Andreas Kemper

Part of the Contributions to Management Science book series (MANAGEMENT SC.)

Table of contents

  1. Front Matter
    Pages i-xvii
  2. Introduction

    1. Front Matter
      Pages 1-1
    2. Andreas Kemper
      Pages 3-11
  3. Valuation in Modern Software Markets

    1. Front Matter
      Pages 14-14
    2. Andreas Kemper
      Pages 15-28
    3. Andreas Kemper
      Pages 29-41
  4. Modeling Network Effects in Software Markets

    1. Front Matter
      Pages 66-66
    2. Andreas Kemper
      Pages 67-84
  5. Modeling Customer Networks from a Complex Networks Perspective

    1. Front Matter
      Pages 134-134
    2. Andreas Kemper
      Pages 135-157
    3. Andreas Kemper
      Pages 179-222
  6. Summary, Implications, Limitations, and Outlook

    1. Front Matter
      Pages 246-246

About this book

Introduction

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.

Keywords

Complex Networks Equity Investment Investment Decision Real Option Valuation Software Markets calculus network network effects

Authors and affiliations

  • Andreas Kemper
    • 1
  1. 1.FrankfurtGermany

Bibliographic information

  • DOI https://doi.org/10.1007/978-3-7908-2367-7
  • Copyright Information Physica-Verlag Heidelberg 2010
  • Publisher Name Physica-Verlag HD
  • eBook Packages Business and Economics
  • Print ISBN 978-3-7908-2366-0
  • Online ISBN 978-3-7908-2367-7
  • Series Print ISSN 1431-1941
  • About this book
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