Article ID Journal Published Year Pages File Type
5128487 Operations Research Letters 2017 7 Pages PDF
Abstract

We use a control framework to analyze the profit maximization problem of digital vendors that capture market share by focusing effort on post-launch product maintenance effort. Effort influences user perception of the product and drives the revenue stream via user adoption. We show necessary and sufficient conditions for optimality, and that perceived quality declines over a product's life cycle. This corresponds with Lehman's 7th law of software evolution. Last, we illustrate control paths under possible market conditions, assuming linearized functions.

Related Topics
Physical Sciences and Engineering Mathematics Discrete Mathematics and Combinatorics
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