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Why develop open-source software? The role of non-pecuniary benefits, monetary rewards, and open-source licence type

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  • Robert M. Sauer

Abstract

A review of the basic theory of optimal open-source software contributions points to three key factors affecting supply: non-pecuniary benefits, future expected monetary returns, and open-source licence type. This paper argues that existing large-scale software developer surveys are inadequate for measuring the relative importance of these three factors. Moreover, previous econometric studies that collect their own unique datasets generally measure the importance of only one supply factor in isolation. To fill the gap, I specify a dynamic programming model of joint labour supply and open-source contribution decisions that can provide empirical estimates of relative importance within a single unified framework.
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Suggested Citation

  • Robert M. Sauer, 2007. "Why develop open-source software? The role of non-pecuniary benefits, monetary rewards, and open-source licence type," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 23(4), pages 605-619, Winter.
    • Handle: RePEc:oup:oxford:v:23:y:2007:i:4:p:605-619
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    File URL: http://hdl.handle.net/10.1093/oxrep/grm034
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    1. Josh Lerner, 2005. "The Scope of Open Source Licensing," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 21(1), pages 20-56, April.
    2. Robert M. Sauer, 1998. "Job Mobility and the Market for Lawyers," Journal of Political Economy, University of Chicago Press, vol. 106(1), pages 147-171, February.
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    Cited by:

    1. Jürgen Bitzer & Ingo Geishecker & Philipp J. H. Schröder, 2017. "Is there a wage premium for volunteer OSS engagement? – signalling, learning and noise," Applied Economics, Taylor & Francis Journals, vol. 49(14), pages 1379-1394, March.

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    More about this item

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C80 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations

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