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The impact of the software buying decisions has a rising relevance in social and economic terms. This research focused on the organizations buying decisions of operating systems and office suites for personal computers and the impact on the competition between incumbent and alternative players in the market in terms of software categories. Questionairing method of data collection was used using 5-point likert scale mode, some hypothesis testings were carried out on the most relevant factor of the subject matter at 5% level of significance. It was concluded that in this market beside brand image, product features or price, other factors could have influence in the buying choices. Network effect, switching costs, local network effect, lock-in or consumer heterogeneity all have influence in the buying decision. The results showed that the free licensing with the perception that open source software global cost is lower than the local network effect. The influence of market factors like network effects, lock-in, consumer heterogeneity or switching costs also favors the incumbent proprietary software.

Keywords: Consumer Behaviour, Software Market, Lock-in, Network Effect, Switching Cost, Software Buying Decision.

The most successful GARCH model appears to be GARCH (1,1)model has an excess kurtosis greater than 0 and its distribution is therefore also heavily-tailed as in the ARCH(1) case. Asymptotic theory and estimation for those tests does not have the true log-likelihood for error term and therefore the estimates obtained are only quasi-likelihood estimates. The paper studied three tests using Monte Carlo experiment and obtained that LM test is the best to use unless the necessary criteria are not available and cannot be derived.

Kewwords: Heteroscedasticity, Monte Carlo, GARCH models, Conditional variance

JEL Cl: M60