Network Effects Valuation Framework For Software Markets

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


The previous review of the valuation literature review revealed that currently there are no convincing solutions that account for network effects in software markets. The goal of the following chapter is to integrate the previously derived insights into a process framework for valuation in software markets. First, an overview of all phases of the framework is provided before the respective phases are depicted in detail.


Cash Flow Real Option Network Effect Software Company Option Price Model 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


  1. Arditti, F. (1996). Derivatives - A comprehensive resource for options, futures, interest rate swaps and mortgage securities. Boston: Harvard Business School Press.Google Scholar
  2. Bassen, A., & Popovic, T. (2004). Die Bewertung von B2C-E-Commerce-Unternehmen. Finanz Betrieb, 838–850.Google Scholar
  3. Berger (2008). Boosting IT efficiency. Roland Berger Strategy Consultants, München.Google Scholar
  4. Groehn, A. (1997). Ein Modell der Netzeffekte in der Software-Industrie. Number 790. Kiel: The Kiel Institute of World Economics. Network Effects in Software Markets.Google Scholar
  5. Hamilton, A. (2000). Gold delta hedge trap (part 2). Goldeagle, .
  6. Hommel, U. (1999). Der Realoptionsansatz: Das neue Standardverfahren der Investitionsrechnung. M & A Review,1, 22–29.Google Scholar
  7. Hommel, U., & Pritsch, G. (1999). Marktorientierte Investitionsbewertung mit dem Realoptionsansatz. Finanzmarkt- und Portfoliomanagement,13, 121–144.Google Scholar
  8. Kalkota, R., & Robinson, M. (2001). E-business 2.0: Roadmap for success. Reading, MA: Addison-Wesley.Google Scholar
  9. Meffert, H. (2000). Marketing. Wiesbaden: Gabler.Google Scholar
  10. Niederdrenk, R., & Maack, B. (2008). Trumpf im Bieterwettbewerb: Die richtige Commercial Due Diligence. M&A Review,5, 229–233.Google Scholar
  11. Porter, M. (2008). The five competitive forces that shape strategy. Harvard Business Review,86, 78–93.Google Scholar
  12. Schwartz, E., & Moon, M. (2000). Rational pricing of internet companies. Financial Analysts Journal,56, 62–75.CrossRefGoogle Scholar
  13. Trigeorgis, L. (1996). Real options: Managerial flexibility and strategy in resource allocation. Boston: MIT.Google Scholar
  14. von Westarp, F. (2003). Modeling Software Markets - Empirical Analysis, Network Simulations, and Marketing Implications. Heidelberg: Springer.Google Scholar
  15. Wirtz, J., & Kam, W. (2001). An empirical study on internet-based business-to-business ecommerce in singapore. National University of Singapore,1, 1–30.Google Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2010

Authors and Affiliations

  1. 1.FrankfurtGermany

Personalised recommendations