MTAT.03.244 Software Economics Lecture 9: Software Pricing
MTAT.03.244 Software Economics Lecture 9: Software Pricing
MTAT.03.244 Software Economics Lecture 9: Software Pricing
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Other Factors Affecting <strong>Software</strong> <strong>Pricing</strong><br />
• Competition of course…<br />
• Lock-in and switching costs<br />
• Standards and open-source alternatives<br />
• Piracy<br />
• Network effects:<br />
– Demand for a good depends on how many people<br />
acquire it, e.g. 3G mobile phone, Skype, …<br />
• System effects<br />
– Some products are useless unless they are combined<br />
with other products to form a system, e.g. products<br />
without support and training may be useless<br />
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