To Analyze Entry Barrier and Price in the Industry of Custom-Purpose Applications

Abstract:
The aim of this article is reducing the custom applied softwares cost. For this purpose, this research models the cost of related softwares by means of static bayesian game and assuming the computer companies awareness toward future demand. The results show if an applicant firm, for custom-purpose software, demand its application in two or more stages, price competition of computer companies to attain future profits cause price reduction in bidding stage and its increase after bidding stages. With increase in demand stages, not only the maximum entry forestalling price, but also entry barriers being increase. Based on results, the buyer firms are suggested to complete their software requirement before purchasing and announce the producers from future demands such that the price of the software reduces.
Language:
Persian
Published:
Quarterly Journal of Economic Modelling, Volume:11 Issue: 2, 2017
Pages:
1 to 28
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