Economic Principles in the Software Industry

  • Peter Buxmann
  • Heiner Diefenbach
  • Thomas Hess


Having described the basic rules of the game in  Chap. 1, we now turn to the economic principles in the software industry. We begin by discussing the properties of digital goods (Sect. 2.1), and go on to examine network effects on software markets (Sect. 2.2.) and the closely related issue of standardization (Sect. 2.3). We will also be looking at aspects of transaction cost (Sect. 2.4) and principal-agent theory (Sect. 2.5) that are of particular relevance to the software industry


Network Effect Software Industry Network Utility Software Company Digital Game 
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Copyright information

© Springer-Verlag Berlin Heidelberg 2012

Authors and Affiliations

  1. 1.Chair of Information Systems/WirtschaftsinformatikTU DarmstadtDarmstadtGermany
  2. 2.TDS AGNeckarsulmGermany
  3. 3.Institute for Information Systems and New MediaLMU MünchenMunichGermany

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