Open Source Licensing in Mixed Markets, or Why Open Source Software Does Not Succeed
AbstractThe rivalry between developers of open source and proprietary software encourages open source developers to court users and respond to their needs. If the open source developer wants to promote her own open source standard and solutions, she may choose liberal license terms such as those of the Berkeley Software Distribution as proprietary developers will then find it easier to adopt her standard in their products. If she wants to promote the use of open source software per se, she may use more restrictive license terms such as the General Public License to discourage proprietary appropriation of her effort. I show that open source software that comes late into a market will be less likely than more innovative open source software to be compatible with proprietary software, but is also more likely to be made more accessible to inexperienced users.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Centre for Competition Policy, University of East Anglia in its series Working Papers with number 08-2.
Length: 31 pages
Date of creation: Feb 2008
Date of revision:
open source; software; standards; compatibility; network effects; duopoly; mixed markets; intellectual property; copyright; licensing;
Other versions of this item:
- Gaudeul, Alexia, 2008. "Open Source Licensing in Mixed Markets, or Why Open Source Software Does Not Succeed," MPRA Paper 19596, University Library of Munich, Germany.
- D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
- L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs
- L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
- O34 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
- O38 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Government Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-02-23 (All new papers)
- NEP-COM-2008-02-23 (Industrial Competition)
- NEP-ICT-2008-02-23 (Information & Communication Technologies)
- NEP-INO-2008-02-23 (Innovation)
- NEP-IPR-2008-02-23 (Intellectual Property Rights)
- NEP-NET-2008-02-23 (Network Economics)
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.:
- Eric von Hippel, 1998. "Economics of Product Development by Users: The Impact of "Sticky" Local Information," Management Science, INFORMS, vol. 44(5), pages 629-644, May.
- Hertel, Guido & Niedner, Sven & Herrmann, Stefanie, 2003. "Motivation of software developers in Open Source projects: an Internet-based survey of contributors to the Linux kernel," Research Policy, Elsevier, vol. 32(7), pages 1159-1177, July.
- Gaudeul Alex, 2007. "Do Open Source Developers Respond to Competition? The LATEX Case Study," Review of Network Economics, De Gruyter, vol. 6(2), pages 1-25, June.
- Schmidt, Klaus M. & Schnitzer, Monika, 2003. "Public Subsidies for Open Source? Some Economic Policy Issues of the Software Market," CEPR Discussion Papers 3793, C.E.P.R. Discussion Papers.
- Franke, Nikolaus & Hippel, Eric von, 2003. "Satisfying heterogeneous user needs via innovation toolkits: the case of Apache security software," Research Policy, Elsevier, vol. 32(7), pages 1199-1215, July.
- von Krogh, Georg & von Hippel, Eric, 2003. "Special issue on open source software development," Research Policy, Elsevier, vol. 32(7), pages 1149-1157, July.
- Jürgen Bitzer & Philipp J.H. Schröder, 2005. "The Impact of Entry and Competition by Open Source Software on Innovation Activity," Industrial Organization 0512001, EconWPA.
- Stefano Comino & Fabio Manenti, 2005. "Government Policies Supporting Open Source Software for the Mass Market," Review of Industrial Organization, Springer, vol. 26(2), pages 217-240, December.
- Justin Pappas Johnson, 2002. "Open Source Software: Private Provision of a Public Good," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 11(4), pages 637-662, December.
- Lerner, Josh & Tirole, Jean, 2002. "Some Simple Economics of Open," Journal of Industrial Economics, Wiley Blackwell, vol. 50(2), pages 197-234, June.
- Eric von Hippel, 1994. ""Sticky Information" and the Locus of Problem Solving: Implications for Innovation," Management Science, INFORMS, vol. 40(4), pages 429-439, April.
- Mikko Mustonen, 2005. "When Does a Firm Support Substitute Open Source Programming?," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 14(1), pages 121-139, 03.
- Alexia Gaudeul, 2008.
"Consumer Welfare and Market Structure in a Model of Competition Between Open Source and Proprietary Software,"
08-31, Centre for Competition Policy, University of East Anglia.
- Gaudeul, Alexia, 2008. "Consumer welfare and market structure in a model of competition between open source and proprietary software," MPRA Paper 19555, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Cheryl Whittkaer) The email address of this maintainer does not seem to be valid anymore. Please ask Cheryl Whittkaer to update the entry or send us the correct address.
If references are entirely missing, you can add them using this form.