Software Economics: An Application Of Price Theory To The Development Of Expert Systems

Abstract

“Expert Systems” in computer software appear to offer a potential for increases in project productivity in the range of Orders of Magnitude.  This paper offers a software development model illustrating not only the optimal allocation of project resources between tool making and tool application but also appropriate investment in the project and several means of dealing with project risk.  The model illustrates that much more benefit is to be derived from extending the domain of applicability of expert systems than from increasing the productivity gains of those techniques.  We also find that it is possible to compensate for a more risky approach by alternative scheduling.