arXiv · 2610.27560
Restraint-Induced Loss in Software-Intensive Enterprises: Large A Verified Technical Economic Impact Model of Operational Downtime and Delayed Commercialization, with Tail-Risk Security Sizing and Three Enterprise Case Studies
Abstract
When an enterprise must stop using a software component (for example, because of an interim court restraint in a technology patent dispute), the economic loss passes through a chain of technical mechanisms. Withdrawing the component exposes dependent capabilities. Fallback paths degrade throughput, correctness or feature coverage. Incident rates and recovery backlogs rise. Customers respond. Remediation programmes compete against the restraint clock, and planned launches are pushed back. This paper develops and verifies a \emph{technical--economic impact model} (TEIM) that quantifies this chain end to end as a probability distribution of present-value loss rather than as a point estimate. The technical layer combines (i)~a lattice-valued, fixed-point semantics of service dependencies with degraded fallbacks, (ii)~continuous-time Markov reliability models evaluated by uniformization and specified in continuous stochastic logic, and (iii)~a fluid queueing model of post-outage backlog. These feed (iv)~convex acute-outage loss functions with regulatory and contractual thresholds, (v)~compound-Poisson excess-incident processes, (vi)~survival-weighted functional, attrition and funding channels that provably avoid double counting, (vii)~a real-options valuation of forcibly delayed launches with an explicit closed form, and (viii)~a COCOMO~II--driven stochastic activity network for design-around and substitution strategies. We prove seven theorems and eight propositions.
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Mahdi Eslamimehr. 2026-10-20. Restraint-Induced Loss in Software-Intensive Enterprises: Large A Verified Technical Economic Impact Model of Operational Downtime and Delayed Commercialization, with Tail-Risk Security Sizing and Three Enterprise Case Studies. https://arxiv.org/abs/2610.27560
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