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Mathematical Formulation and Analysis of the Optimal Launch Timing for Mobile Applications with Perceived Value and Network Effect
Joint Authors
Li, Wei
Ma, Shu-gang
He, Yan-peng
An, Qiao-zhi
Source
Mathematical Problems in Engineering
Issue
Vol. 2017, Issue 2017 (31 Dec. 2017), pp.1-6, 6 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2017-11-06
Country of Publication
Egypt
No. of Pages
6
Main Subjects
Abstract EN
Successive release is a common strategy adopted by mobile app providers, and determining the launch timing of new app versions presents an important challenge to these providers.
Network effect and consumers’ perceived value are significant factors that influence the decisions of providers.
By focusing on a monopoly market, we develop an optimization model that incorporates the two factors to determine the optimal launch timing of new versions of mobile apps.
The model is solved by Lagrangian method, and the closed-form results indicate that the monopoly provider launches new app versions as soon as possible if the consumers’ perceived value is not sufficiently high.
Otherwise, the new version is launched after (or before) the sales of its former version reach maturity if the network effect is (or not) sufficiently high.
Moreover, the monopoly app vendor delays the launch of a new version when the consumers enjoy a large network externality; however, the same vendor accelerates the release of upgrades if the consumers have a high perceived value of the app.
This paper presents a novel mathematical formulation to analyze the launching policy of digital products.
American Psychological Association (APA)
Li, Wei& Ma, Shu-gang& He, Yan-peng& An, Qiao-zhi. 2017. Mathematical Formulation and Analysis of the Optimal Launch Timing for Mobile Applications with Perceived Value and Network Effect. Mathematical Problems in Engineering،Vol. 2017, no. 2017, pp.1-6.
https://search.emarefa.net/detail/BIM-1192110
Modern Language Association (MLA)
Li, Wei…[et al.]. Mathematical Formulation and Analysis of the Optimal Launch Timing for Mobile Applications with Perceived Value and Network Effect. Mathematical Problems in Engineering No. 2017 (2017), pp.1-6.
https://search.emarefa.net/detail/BIM-1192110
American Medical Association (AMA)
Li, Wei& Ma, Shu-gang& He, Yan-peng& An, Qiao-zhi. Mathematical Formulation and Analysis of the Optimal Launch Timing for Mobile Applications with Perceived Value and Network Effect. Mathematical Problems in Engineering. 2017. Vol. 2017, no. 2017, pp.1-6.
https://search.emarefa.net/detail/BIM-1192110
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1192110