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Game theory perspectives on client: vendor relationships in offshore software outsourcing

Published: 27 May 2006 Publication History

Abstract

The objective of this paper is to provide the initial literature based insights into the game theory specifically with the viewpoint of client - vendor relationships in offshore software outsourcing. Game theory has been used for long in understanding various contexts in economics and other disciplines. Offshore software outsourcing relates to the situation in which client and vendor are operating from different countries. Subsequently, in this paper, the initial understanding of game theory focusing on software engineering community is developed. Particularly risk, rationality, payoffs, and other elements of game theory are explored in terms of how they affect offshore software outsourcing. The paper is structured as follows. Section one provides introduction to game theory concept. Section two explores the history, representation and types of games. Section three compares offshore software outsourcing with types and elements of game theory. Section four discusses one of the most famous game theory examples - 'prisoners-dilemma' and relates it to software outsourcing context. Finally, section five concludes this paper with the intended future work.

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Humphrey, W. (1989). Managing the software process. Addison-Weseley Publishing Company, Inc.
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Mobius, M.M. (February, 2006). Lecture I -II: Motivations and decision theory. Lecture notes on Introduction to Game theory course, Harvard University. {http://www.courses.fas.harvard.edu/ec1052/Lectures/lecture1.pdf}
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Osborne, M., and Rubinstein, A. (1994). A course in game theory. The MIT press: Cambridge.
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Von Neumann, J., and Morgensten, O. (1964). Theory of games and economic behavior. New York: Science Editions J. Wiley.
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Cited By

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  • (2021)The Assessor's Dilemma: Improving Bug Repair via Empirical Game TheoryIEEE Transactions on Software Engineering10.1109/TSE.2019.294460847:10(2143-2161)Online publication date: 1-Oct-2021
  • (2019)Information Technology Outsourcing Chain: Literature Review and Implications for Development of Distributed CoordinationSustainability10.3390/su1105146011:5(1460)Online publication date: 9-Mar-2019
  • (2012)A Market Based Approach for Resolving Resource Constrained Task Allocation Problems in a Software Development ProcessSystems, Software and Services Process Improvement10.1007/978-3-642-31199-4_3(25-36)Online publication date: 2012
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    cover image ACM Conferences
    EDSER '06: Proceedings of the 2006 international workshop on Economics driven software engineering research
    May 2006
    56 pages
    ISBN:1595933964
    DOI:10.1145/1139113
    Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than ACM must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected]

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    Publication History

    Published: 27 May 2006

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    Author Tags

    1. economics
    2. game theory
    3. software engineering
    4. software outsourcing

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    View all
    • (2021)The Assessor's Dilemma: Improving Bug Repair via Empirical Game TheoryIEEE Transactions on Software Engineering10.1109/TSE.2019.294460847:10(2143-2161)Online publication date: 1-Oct-2021
    • (2019)Information Technology Outsourcing Chain: Literature Review and Implications for Development of Distributed CoordinationSustainability10.3390/su1105146011:5(1460)Online publication date: 9-Mar-2019
    • (2012)A Market Based Approach for Resolving Resource Constrained Task Allocation Problems in a Software Development ProcessSystems, Software and Services Process Improvement10.1007/978-3-642-31199-4_3(25-36)Online publication date: 2012
    • (2010)Improving Software Development Process through Economic Mechanism DesignSystems, Software and Services Process Improvement10.1007/978-3-642-15666-3_16(177-188)Online publication date: 2010
    • (2009)Knowledge transfer success factors in IT outsourcing environmentWSEAS Transactions on Information Science and Applications10.5555/1639438.16394426:6(916-925)Online publication date: 1-Jun-2009
    • (2009)Modeling Software Evolution with Game TheoryProceedings of the International Conference on Software Process: Trustworthy Software Development Processes10.1007/978-3-642-01680-6_32(354-365)Online publication date: 16-May-2009

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