Resource allocation among development phases: an economic approach

This study presents an economic model for solving the SW manufacturing problem of resource allocation among the different development phases. The suggested model takes into consideration the allocation effects on SW quality, development cost and customers willingness to pay for quality. The model suggests a bi-level definition of SW manufacturer output. The first level considers the quality of the different phases artifacts, (internal quality), while the integration of all these qualities into what is consumed by the customer constitutes the second level (external quality). We illustrate how the model can be applied in an experimental setting, and describe the tools developed for such applications. This illustration lays the basis for future empirical studies evaluating the model's different functions and ability to improve SW development processes.