The Jukebox Mode of Innovation - A Model of Commercial Open Source Development
AbstractIn this Paper, I explore the circumstances under which innovation processes without secrecy or intellectual property protection are viable, and where free revealing of innovations is a profit-maximizing strategy. Motivated by an empirical study of embedded Linux, I develop a duopoly model of quality competition. Firms require two complementary technologies as inputs, but differ with respect to the relative importance of these technologies. I find that a regime with compulsory revealing can lead to higher product qualities and higher profits than a proprietary regime. When the decision to reveal is endogenized, equilibria with voluntary revealing arise, again superior to the proprietary outcome.
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 C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 4507.
Date of creation: Jul 2004
Date of revision:
Contact details of provider:
Postal: Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ.
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
Other versions of this item:
- Joachim Henkel, 2006. "The Jukebox Mode of Innovation - a Model of Commercial Open Source Development," DRUID Working Papers 06-25, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
- L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Nicolas JULLIEN & Jean-BenoÃ®t Zimmermann, 2011.
"FLOSS in an industrial economics perspective,"
- Nicolas Jullien & Jean-BenoÃ®t Zimmermann, 2011.
"Floss firms, users and communities: a viable match?,"
- Nicolas Jullien & Jean-BenoÃ®t Zimmermann, 2011. "Floss firms, users and communities: a viable match?," Journal of Innovation Economics, De Boeck UniversitÃ©, De Boeck UniversitÃ©, vol. 0(1), pages 31-53.
- Katharine Rockett, 2009. "Property Rights and Invention," Economics Discussion Papers, University of Essex, Department of Economics 663, University of Essex, Department of Economics.
- Gastón Llanes & Ramiro de Elejalde, 2009.
"Industry Equilibrium with Open Source and Proprietary Firms,"
Harvard Business School Working Papers
09-149, Harvard Business School.
- Llanes, GastÃ³n & de Elejalde, Ramiro, 2013. "Industry equilibrium with open-source and proprietary firms," International Journal of Industrial Organization, Elsevier, Elsevier, vol. 31(1), pages 36-49.
- Engelhardt, Sebastian v. & Freytag, Andreas, 2013.
"Institutions, culture, and open source,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 95(C), pages 90-110.
- Stephen M. Maurer & Suzanne Scotchmer, 2006. "Open Source Software: The New Intellectual Property Paradigm," NBER Working Papers 12148, National Bureau of Economic Research, Inc.
- Ramon Casadesus-Masanell & Gaston Llanes, 2009.
09-06, NET Institute, revised Sep 2009.
- Sebastian von Engelhardt, 2010. "Quality Competition or Quality Cooperation? License-Type and the Strategic Nature of Open Source vs. Closed Source Business Models," Jena Economic Research Papers 2010-034, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- Sauer, Robert M., 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).
- 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, vol. 23(4), pages 605-619, Winter.
- Robert Sauer, 2007. "Why develop open-source software? The role of non-pecuniary benefits, monetary rewards, and open-source licence type," Working Papers, Jerusalem Institute for Market Studies (JIMS) 6, Jerusalem Institute for Market Studies (JIMS).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.