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Cooking pot Markets: an Economic Model for the Trade in Free Goods and Services on the Internet

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  • Rishab Aiyer Ghosh

    ()
    (First Monday)

Abstract

It has long been assumed that there is something beyond economics involved in the proliferation of free goods and services on the Internet. Although Netscape's recent move to give away the source code for its browser shows that the corporate world now believes that it is possible to make money with free software - previously eyed with cautious pessimism - money is not the prime motivator of most producers of the Internet's free goods, and neither is altruism. Efforts and rewards may be valued in intangibles, but, as this paper argues, there is a very tangible market dynamics to the free economy of the Internet, and rational economic decisions are at work. This is the "cooking-pot" market: an implicit barter economy with asymmetric transactions.

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Bibliographic Info

Article provided by Department of Economics, Universidade Federal de Pernambuco in its journal Brazilian Electronic Journal of Economics.

Volume (Year): 1 (1998)
Issue (Month): 1 (July)
Pages:

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Handle: RePEc:bej:issued:v:1:y:1998:i:1:cooking

Note: This is an updated version of a paper published in First Monday, Vol 3, Issue 3, March 1998. http://www.firstmonday.dk/issues/issue3_3/
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Keywords: Internet; Trade;

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Cited by:
  1. Cowan,Robin & Jonard,Nicolas, 2000. "The Dynamics of Collective Invention," Research Memorandum 018, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
  2. Maria Alessandra Rossi, 2004. "Decoding the "Free/Open Source(F/OSS) Software Puzzle" a survey of theoretical and empirical contributions," Department of Economics University of Siena 424, Department of Economics, University of Siena.
  3. Krishnamurthy, Sandeep & Ou, Shaosong & Tripathi, Arvind K., 2014. "Acceptance of monetary rewards in open source software development," Research Policy, Elsevier, vol. 43(4), pages 632-644.
  4. Krishnamurthy, Sandeep & Tripathi, Arvind K., 2009. "Monetary donations to an open source software platform," Research Policy, Elsevier, vol. 38(2), pages 404-414, March.
  5. Gilroy, Bernard Michael & Vollpert, Tobias, 1999. "Zukunftsperspektiven betriebswirtschaftlicher Forschung im Bereich der Internetökonomie
    [Future perspectives of economic research in the context of internet economics]
    ," MPRA Paper 21086, University Library of Munich, Germany.
  6. Gilroy, Bernard Michael, 1999. "A Primer on Internet Economics: Economic Aspects of Digital Information Technologies," MPRA Paper 17971, University Library of Munich, Germany.

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