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The Simple Economics of Open Source

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Josh Lerner
Jean Triole

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Abstract

There has been a recent surge of interest in open source software development, which involves developers at many different locations and organizations sharing code to develop and refine programs. To an economist, the behavior of individual programmers and commercial companies engaged in open source projects is initially startling. This paper makes a preliminary exploration of the economics of open source software. We highlight the extent to which labor economics, especially the literature on career concerns,' can explain many of these projects' features. Aspects of the future of open source development process, however, remain somewhat difficult to predict with off-the-shelf' economic models.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 7600.

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Date of creation: Mar 2000
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Publication status: published as "Some Simple Economics of Open Source," Journal of Industrial Economics, 52 (June 2002) 197-234.
Handle: RePEc:nbr:nberwo:7600

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Find related papers by JEL classification:
L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs

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References listed on IDEAS
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.:
  1. Hermalin, Benjamin E, 1998. "Toward an Economic Theory of Leadership: Leading by Example," American Economic Review, American Economic Association, vol. 88(5), pages 1188-1206, December. [Downloadable!] (restricted)
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  2. Holmstrom, Bengt, 1999. "Managerial Incentive Problems: A Dynamic Perspective," Review of Economic Studies, Blackwell Publishing, vol. 66(1), pages 169-82, January. [Downloadable!] (restricted)
  3. Bengt Holmstrom, 1999. "Managerial Incentive Problems: A Dynamic Perspective," NBER Working Papers 6875, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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(explanations, 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.)

  1. Markus Pasche & Sebastian von Engelhardt, 2004. "Volkswirtschaftliche Aspekte der Open-Source-Softwareentwicklung," Jenaer Schriften zur Wirtschaftswissenschaft 18/2004, Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultät. [Downloadable!]
  2. Arjo Klamer & Hendrik P. van Dalen, 2001. "Attention and the Art of Scientific Publishing," Tinbergen Institute Discussion Papers 01-022/1, Tinbergen Institute. [Downloadable!]
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  3. Deng, Feng, 2008. "What Is “Open”? An Economic Analysis of Open Institutions," MPRA Paper 8888, University Library of Munich, Germany. [Downloadable!]
  4. Juan Mateos Garcia & W. Edward Steinmueller, 2003. "The Open Source Way of Working: a New Paradigm for the Division of Labour in Software Development?," SPRU Electronic Working Paper Series 92, University of Sussex, SPRU - Science and Technology Policy Research. [Downloadable!]
  5. Marie Coris (GRES, IFReDE-E3i), 2002. "Les Sociétés de Services en Logiciels Libres : l'émergence d'un système de production alternatif au sein de l'industrie du logiciel? (In French)," Working Papers of E3i 2002-5, Equipe Industries Innovation Institutions, Université Bordeaux IV, France. [Downloadable!]
  6. Frank A.G. den Butter & Stefan P.T. Groot & Faroek Lazrak, 2007. "The Transaction Costs Perspective on Standards as a Source of Trade and Productivity Growth," Tinbergen Institute Discussion Papers 07-090/3, Tinbergen Institute. [Downloadable!]
  7. Patrick DeGraba, 2002. "The Economics of Open Source Software: A Survey of the Early Literature," Review of Network Economics, Concept Economics, vol. 1(1), pages 66-74, March. [Downloadable!]
  8. Alexandre Gaudeul, 2004. "The LaTeX project: A case study of open-source software," Industrial Organization 0409009, EconWPA. [Downloadable!]
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