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What Is “Open”? An Economic Analysis of Open Institutions

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Author Info
Deng, Feng
Abstract

By examining several different types of open institutions including open source software, open science, open square and (open) urban planning, this paper presents a general analysis of open institutional structure that is complementary to traditional proprietary mode. We argue that open institutions, in whatever forms, are essentially about decentralized production of a collective good (or “commons”) that relies on voluntary collaboration of highly variable human-related input. In addition to providing a general definition of open institutional structure, we submit there are two necessary conditions for open institutions. The first is the integration of consumers into production. The second condition is that the efficiency gain from “production” commons is the objective and the tragedy of anticommons becomes a serious problem. In this sense, open institutions represent a positive approach toward externality and uncertainty.

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File URL: http://mpra.ub.uni-muenchen.de/8888/
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 8888.

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Date of creation: 10 Jan 2008
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Handle: RePEc:pra:mprapa:8888

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Related research
Keywords: open institutions; collective good; open source software; open science; open square; urban planning;

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Find related papers by JEL classification:
D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs
R52 - Urban, Rural, and Regional Economics - - Regional Government Analysis - - - Land Use and Other Regulations
L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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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. Douglass C North & John Joseph Wallis & Barry R. Weingast, 2006. "A Conceptual Framework for Interpreting Recorded Human History," NBER Working Papers 12795, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Buchanan, James M & Yoon, Yong J, 2000. "Symmetric Tragedies: Commons and Anticommons," Journal of Law & Economics, University of Chicago Press, vol. 43(1), pages 1-13, April.
  3. Josh Lerner & Jean Triole, 2000. "The Simple Economics of Open Source," NBER Working Papers 7600, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Andrea Bonaccorsi & Cristina Rossi, 2002. "Why open source software can succeed," LEM Papers Series 2002/15, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy. [Downloadable!]
  5. Richard N. Langlois & Nicolai J. Foss, 1997. "Capabilities and Governance the Rebirth of Production in the Theory of Economic Organization," DRUID Working Papers 97-2, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies. [Downloadable!]
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  6. Bruce Kogut & Anca Metiu, 2001. "Open-Source Software Development and Distributed Innovation," Oxford Review of Economic Policy, Oxford University Press, vol. 17(2), pages 248-264, Summer.
  7. Francesco Parisi & Norbert Schulz & Ben Depoorter, 2004. "Simultaneous and Sequential Anticommons," European Journal of Law and Economics, Springer, vol. 17(2), pages 175-190, March. [Downloadable!] (restricted)
  8. David, Paul A, 1998. "Common Agency Contracting and the Emergence of "Open Science" Institutions," American Economic Review, American Economic Association, vol. 88(2), pages 15-21, May. [Downloadable!] (restricted)
  9. F. Frederic Deng, 2003. "Collective Goods and the Political Hold-Up Problem," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 159(2), pages 414-434, June. [Downloadable!] (restricted)
  10. Cheung, Steven N S, 1970. "The Structure of a Contract and the Theory of a Non-exclusive Resource," Journal of Law & Economics, University of Chicago Press, vol. 13(1), pages 49-70, April.
  11. 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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  12. F Frederic Deng, 2003. "The rebound of private zoning: property rights and local governance in urban land use," Environment and Planning A, Pion Ltd, London, vol. 35(1), pages 133-149, January. [Downloadable!] (restricted)
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