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Why open source software can succeed

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  • Andrea Bonaccorsi
  • Cristina Rossi
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    Abstract

    The paper discusses three key economic problems raised by the emergence and diffusion of Open source software: motivation, coordination, and diffusion under a dominant standard. First, the movement took off through the activity of a software development community that deliberately did not follow profit motivations. Second, a hierarchical coordination emerged without the support of an organization with proprietary rights. Third, Linux and other open source systems diffused in an environment dominated by established proprietary standards, which benefited from significant increasing returns. The paper shows that recent developments in the theory of critical mass in the diffusion of technologies with network externality may help to explain these phenomena.

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    Bibliographic Info

    Paper provided by Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy in its series LEM Papers Series with number 2002/15.

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    Date of creation: 19 Dec 2002
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    Handle: RePEc:ssa:lemwps:2002/15

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    Related research

    Keywords: Open Source; Diffusion; Network Externality.;

    This paper has been announced in the following NEP Reports:

    References

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    1. Lerner, Josh & Tirole, Jean, 2001. "The open source movement: Key research questions," European Economic Review, Elsevier, vol. 45(4-6), pages 819-826, May.
    2. David, Paul A, 1985. "Clio and the Economics of QWERTY," American Economic Review, American Economic Association, vol. 75(2), pages 332-37, May.
    3. Witt, Ulrich, 1997. ""Lock-in" vs. "critical masses" -- Industrial change under network externalities," International Journal of Industrial Organization, Elsevier, vol. 15(6), pages 753-773, October.
    4. Liebowitz, S J & Margolis, Stephen E, 1990. "The Fable of the Keys," Journal of Law and Economics, University of Chicago Press, vol. 33(1), pages 1-25, April.
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    Cited by:
    1. Pénin, Julien & Wack, Jean-Pierre, 2008. "Research tool patents and free-libre biotechnology: A suggested unified framework," Research Policy, Elsevier, vol. 37(10), pages 1909-1921, December.
    2. Deng, Feng, 2008. "What Is “Open”? An Economic Analysis of Open Institutions," MPRA Paper 8888, University Library of Munich, Germany.

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