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On the determinants of the degree of openness of Open Source firms: An entry model

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Author Info

  • Stefano Colombo

    ()
    (DISCE, Università Cattolica)

  • Luca Grilli

    (Politecnico di Milano)

  • Cristina Rossi Lamastra

    (Politecnico di Milano)

Abstract

This paper examines the relationship between the degree of openness that software start-ups choose and some of the main industrial features faced by new entrants. Hypotheses derived from a formal model are tested through the implementation of econometric techniques and information provided by a novel database (ELISS). Theoretical predictions and empirical results indicate that the choice by start-ups of the degree of openness is negatively influenced by the sensitivity of consumers to price and is positively related both to the strength of network externalities their products exhibit and to the competitive advantage of the incumbent.

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File URL: http://www.unicatt.it/Istituti/EconomiaFinanza/Quaderni/ief0088.pdf
File Function: First version, 2009
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Bibliographic Info

Paper provided by Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE) in its series DISCE - Quaderni dell'Istituto di Economia e Finanza with number ief0088.

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Length: nn pages 19
Date of creation: Apr 2009
Date of revision:
Handle: RePEc:ctc:serie3:ief0088

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Web page: http://www.unicatt.it/Istituti/EconomiaFinanza
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Related research

Keywords: open-source software; network effects; entry;

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Cited by:
  1. Giuseppe Mastromatteo, 2011. "H.P. Minsky And Policies To Countervail Crises," DISCE - Quaderni dell'Istituto di Economia e Finanza ief0102, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
  2. Sandro Brusco & Luca Colombo & Umberto Galmarini, 2010. "Local Governments Tax Autonomy, Lobbying, and Welfare," Department of Economics Working Papers 10-01, Stony Brook University, Department of Economics.
  3. Giuseppe Mastromatteo, 2011. "The Debate on the Crisis: Recent Reappraisals of the Concept of Functional Finance," DISCE - Quaderni dell'Istituto di Economia e Finanza ief0105, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
  4. Dongryul Lee & Byung Kim, 2013. "Motivations for Open Source Project Participation and Decisions of Software Developers," Computational Economics, Society for Computational Economics, vol. 41(1), pages 31-57, January.

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