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The Economics of Technology Sharing: Open Source and Beyond

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Author Info
Josh Lerner
Jean Tirole

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Abstract

This paper reviews our understanding of the growing open source movement. We highlight how many aspects of open source software appear initially puzzling to an economist. As we have acknowledged, our ability to answer confidently many of the issues raised here questions is likely to increase as the open source movement itself grows and evolves. At the same time, it is heartening to us how much of open source activities can be understood within existing economic frameworks, despite the presence of claims to the contrary. The labor and industrial organization literatures provide lenses through which the structure of open source projects, the role of contributors, and the movement's ongoing evolution can be viewed.

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Publisher Info
Article provided by American Economic Association in its journal Journal of Economic Perspectives.

Volume (Year): 19 (2005)
Issue (Month): 2 (Spring)
Pages: 99-120
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Handle: RePEc:aea:jecper:v:19:y:2005:i:2:p:99-120

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. James Bessen & Robert M. Hunt, 2007. "An Empirical Look at Software Patents," Journal of Economics & Management Strategy, Blackwell Publishing, vol. 16(1), pages 157-189, 03. [Downloadable!] (restricted)
    Other versions:
  2. Aghion, Philippe & Tirole, Jean, 1997. "Formal and Real Authority in Organizations," Journal of Political Economy, University of Chicago Press, vol. 105(1), pages 1-29, February.
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  3. Casadesus-Masanell, Ramon & Ghemawat, Pankaj, 2003. "Dynamic mixed duopoly: A model motivated by Linux vs. Windows," IESE Research Papers D/519, IESE Business School. [Downloadable!]
  4. Dessein, Wouter, 2002. "Authority and Communication in Organizations," Review of Economic Studies, Blackwell Publishing, vol. 69(4), pages 811-38, October.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Eilhard, Jan, 2008. "Firms on SourceForge," MPRA Paper 7809, University Library of Munich, Germany. [Downloadable!]
  2. Nicholas Economides & Evangelos Katsamakas, 2005. "Linux vs. Windows: A comparison of application and platform innovation incentives for open source and proprietary software platforms+," Working Papers 05-03, NET Institute, revised Sep 2005. [Downloadable!]
    Other versions:
  3. Stephane Verani, 2006. "Open Source Development in a Differentiated Duopoly," Economics Discussion / Working Papers 06-05, The University of Western Australia, Department of Economics. [Downloadable!]
  4. Marcel Boyer & Jacques Robert, 2006. "The Economics of Free and Open Source Software: Contributions to a Government Policy on Open Source Software," CIRANO Project Reports 2006rp-03, CIRANO. [Downloadable!]
  5. Frank A.G. den Butter & Stefan P.T. Groot & Faroek Lazrak, 2007. "The Transaction Costs Perspective on Standards as a Source of Trade and Productivity Growth," Tinbergen Institute Discussion Papers 07-090/3, Tinbergen Institute. [Downloadable!]
  6. Evangelos Katsamakas & Mingdi Xin, 2005. "An economic analysis of enterprise adoption of open source software," Working Papers 05-29, NET Institute, revised Oct 2005. [Downloadable!]
  7. Alex Gaudeul, 2005. "Public provision of a private good: What is the point of the BSD license?," Industrial Organization 0511002, EconWPA. [Downloadable!]
  8. Nicholas Economides & Evangelos Katsamakas, 2005. "Two-sided competition of proprietary vs. open source technology platforms and the implications for the software industry1," Working Papers 05-06, NET Institute, revised Oct 2005. [Downloadable!]
    Other versions:
  9. Deng, Feng, 2008. "What Is “Open”? An Economic Analysis of Open Institutions," MPRA Paper 8888, University Library of Munich, Germany. [Downloadable!]
  10. Michele Boldrin & David K Levine, 2006. "Perfectly Competitive Innovation," Levine's Working Paper Archive 618897000000000954, UCLA Department of Economics. [Downloadable!]
    Other versions:
  11. Blecker, Thorsten & Abdelkafi, Nizar & Raasch, Christina, 2008. "Enabling and Sustaining Collaborative Innovation," MPRA Paper 8964, University Library of Munich, Germany. [Downloadable!]
  12. Robert M. Sauer, 2007. "Why Develop Open Source Software? The Role of Non-Pecuniary Benefits, Monetary Rewards and Open Source Licence Type," IZA Discussion Papers 3197, Institute for the Study of Labor (IZA). [Downloadable!]
  13. Marc Bourreau & Pinar Dogan & Matthieu Manant, 2007. "Modularity and Product Innovation in Digital Markets," Review of Network Economics, Concept Economics, vol. 6(2), pages 175-193, June. [Downloadable!]
  14. Josh Lerner & Parag A. Pathak & Jean Tirole, 2006. "The Dynamics of Open-Source Contributors," American Economic Review, American Economic Association, vol. 96(2), pages 114-118, May.
  15. Andras Niedermayer, 2007. "On Platforms, Incomplete Contracts, and Open Source Software," Diskussionsschriften dp0707, Universitaet Bern, Departement Volkswirtschaft. [Downloadable!]
  16. Ioana Popovici, 2007. "The Determinants of Open Source Quality: An Empirical Investigation," Working Papers 0704, Florida International University, Department of Economics. [Downloadable!]
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