The Economic Value of Modularity in the IPQoS Network: The Real Options Approach (ROA)

The Economic Value of Modularity in the IPQoS Network: The Real Options Approach (ROA)

Hak Ju Kim
Copyright: © 2006 |Pages: 17
DOI: 10.4018/jbdcn.2006010102
OnDemand:
(Individual Articles)
Available
$37.50
Current Special Offers
No Current Special Offers
TOTAL SAVINGS: $37.50

Abstract

As uncertainty in the markets and technologies of the network industry increases, a flexible architecture is needed by network service providers to maintain a competitive advantage. Since complete replacement of existing networks is not practical, and since it is costly for one operator to manage everything in a network, modularity in network design may be an efficient approach. This article is to construct a theoretical framework to support the decisions of network service providers in network design, to modularize or not and, if so, by how much. We develop a model to show the extent of modularity in network design by combining two important concepts: modularity from management and complementarity from economics. This will show how the extent of modularity in networks affects the value of networks with complementary components under uncertainty. For empirical testing, a simple QoS service model network is designed and simulated.

Complete Article List

Search this Journal:
Reset
Volume 20: 1 Issue (2025): Forthcoming, Available for Pre-Order
Volume 19: 1 Issue (2024)
Volume 18: 2 Issues (2022): 1 Released, 1 Forthcoming
Volume 17: 2 Issues (2021)
Volume 16: 2 Issues (2020)
Volume 15: 2 Issues (2019)
Volume 14: 2 Issues (2018)
Volume 13: 2 Issues (2017)
Volume 12: 2 Issues (2016)
Volume 11: 2 Issues (2015)
Volume 10: 4 Issues (2014)
Volume 9: 4 Issues (2013)
Volume 8: 4 Issues (2012)
Volume 7: 4 Issues (2011)
Volume 6: 4 Issues (2010)
Volume 5: 4 Issues (2009)
Volume 4: 4 Issues (2008)
Volume 3: 4 Issues (2007)
Volume 2: 4 Issues (2006)
Volume 1: 4 Issues (2005)
View Complete Journal Contents Listing