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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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Author Info
Robert Sauer () (University of Bristol, Institute for the Study of Labor (IZA), Jerusalem Institute for Market Studies)

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Abstract

A review of the basic theory of optimal open-source software contributions points to three key factors affecting the decision to contribute to the open-source development process: nonpecuniary 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. Previous econometric studies that collect their own unique datasets also fall short because they generally measure the importance of only one supply factor in isolation. To fill the gap, I specify an estimable dynamic programming model of joint labour supply and open-source participation decisions that can provide empirical estimates of relative importance within a single unified framework of optimal decision-making.

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File URL: http://jimsisrael.org/pdf/OSSauer.pdf
File Format: application/pdf
File Function: First Version, 2007
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Publisher Info
Paper provided by Jerusalem Institute for Market Studies (JIMS) in its series Working Papers with number 6.

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Length: 21 pages
Date of creation: Jan 2007
Date of revision:
Publication status: Published in Oxford Review of Economic Policy, 2007, 23, 605-619
Handle: RePEc:jms:wpaper:6

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Web page: http://www.jims-israel.org
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For technical questions regarding this item, or to correct its listing, contact: (Corinne Sauer).

Related research
Keywords: software; open source; labor supply ; dynamic programming;

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Find related papers by JEL classification:
C61 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - 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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  1. 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. [Downloadable!] (restricted)
  2. Keane, Michael P & Wolpin, Kenneth I, 1994. "The Solution and Estimation of Discrete Choice Dynamic Programming Models by Simulation and Interpolation: Monte Carlo Evidence," The Review of Economics and Statistics, MIT Press, vol. 76(4), pages 648-72, November. [Downloadable!] (restricted)
    Other versions:
  3. Stephen M. Maurer & Suzanne Scotchmer, 2006. "Open Source Software: The New Intellectual Property Paradigm," NBER Working Papers 12148, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Lerner, Josh & Tirole, Jean, 2002. "Some Simple Economics of Open," Journal of Industrial Economics, Blackwell Publishing, vol. 50(2), pages 197-234, June. [Downloadable!] (restricted)
  5. 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. [Downloadable!] (restricted)
  6. Justin Pappas Johnson, 2002. "Open Source Software: Private Provision of a Public Good," Journal of Economics & Management Strategy, Blackwell Publishing, vol. 11(4), pages 637-662, December. [Downloadable!] (restricted)
  7. Haruvy Ernan & Wu Fang & Chakravarty Sujoy, 2005. "Incentives for Developers’ Contributions and Product Performance Metrics in Open Source Development: An Empirical Exploration," IIMA Working Papers 2005-03-04, Indian Institute of Management Ahmedabad, Research and Publication Department. [Downloadable!]
  8. Henkel, Joachim, 2004. "The Jukebox Mode of Innovation - A Model of Commercial Open Source Development," CEPR Discussion Papers 4507, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  9. Harhoff, Dietmar & Henkel, Joachim & von Hippel, Eric, 2003. "Profiting from voluntary information spillovers: how users benefit by freely revealing their innovations," Research Policy, Elsevier, vol. 32(10), pages 1753-1769, December. [Downloadable!] (restricted)
  10. Lakhani, Karim R. & von Hippel, Eric, 2003. "How open source software works: "free" user-to-user assistance," Research Policy, Elsevier, vol. 32(6), pages 923-943, June. [Downloadable!] (restricted)
  11. Keane, Michael P & Wolpin, Kenneth I, 1997. "The Career Decisions of Young Men," Journal of Political Economy, University of Chicago Press, vol. 105(3), pages 473-522, June.
    Other versions:
  12. Josh Lerner & Jean Tirole, 2005. "The Economics of Technology Sharing: Open Source and Beyond," Journal of Economic Perspectives, American Economic Association, vol. 19(2), pages 99-120, Spring. [Downloadable!] (restricted)
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  13. Josh Lerner, 2005. "The Scope of Open Source Licensing," Journal of Law, Economics and Organization, Oxford University Press, vol. 21(1), pages 20-56, April. [Downloadable!] (restricted)
    Other versions:
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