Dual licensing in open source software markets
AbstractIn this paper we present a theoretical model to study the characteristics and the commercial sustainability of dual licensing, an open source (OS) business strategy that has gained popularity among software vendors. With dual licensing, a firm releases the same software product under both a traditional proprietary license and an open source one. We show that the decision to employ a dual licensing strategy occurs whenever the feedbacks of the open source community are valuable enough compared to the quality of the software that the firm is able to develop in-house. Our analysis points to the central role of an appropriate managing of OS licenses in order to balance the pros and cons of “going open source” and to make this versioning strategy viable for software vendors; our analysis also suggests a possible explanation for the observed proliferation of open source licenses.
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Bibliographic InfoArticle provided by Elsevier in its journal Information Economics and Policy.
Volume (Year): 23 (2011)
Issue (Month): 3 ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/505549
Open source software; Open source business models; Embedded software; Dual licensing; Versioning;
Other versions of this item:
- Stefano Comino & Fabio M. Manenti, 2007. "Dual licensing in open source software markets," Department of Economics Working Papers 0718, Department of Economics, University of Trento, Italia.
- Fabio Maria Manenti & Stefano Comino, 2010. "Dual Licensing in Open Source Software Markets," "Marco Fanno" Working Papers 0112, Dipartimento di Scienze Economiche "Marco Fanno".
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- L17 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Open Source Products and Markets
- L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
- D45 - Microeconomics - - Market Structure and Pricing - - - Rationing; Licensing
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.:
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- Éric Darmon & Dominique TORRE, 2014. "Open Source, Dual Licensing and Software Competition," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201405, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
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