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Can open sourcing lead to inferior standards?

Author

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  • Kristian Koerselman

    (Department of Economics and Statistics, bo Akademi University)

Abstract

I investigate the effect of open source on standardization outcomes in a market with positive network externalities. In a closed source world, it seems reasonable to assume that the probability of a standard being chosen is positively correlated with its quality. Open source may weaken or invert this relationship by giving Bertrand competition losers a second chance. It however follows that though open source leads to more competition and more standardization, the chosen standard will be the same as when open source is not an option.

Suggested Citation

  • Kristian Koerselman, 2008. "Can open sourcing lead to inferior standards?," Discussion Papers 27, Aboa Centre for Economics.
    • Handle: RePEc:tkk:dpaper:dp27
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    open source software; FLOSS; standardization; network externalities; competition;
    All these keywords.

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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