Open Source Software, Competition and Potential Entry
We analyze a model with two software firms, quality improving coding expenditures and potential competition. The firms can publish parts of their software as open source. Publishing software implies positive spillovers and thus reduces the firms' coding costs. On the other hand there exist two negative effects. First, lower coding costs induce higher coding expenditures which decreases the firms' profits if their programs are substitutes. Second, open source encourages entry and increases the expenditures required to deter entry. The firms' optimal open source decisions balance these opposite effects.
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.:
- 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.
- Josh Lerner & Jean Tirole, 2002. "The Scope of Open Source Licensing," NBER Working Papers 9363, National Bureau of Economic Research, Inc.
- Josh Lerner & Jean Tirole, 2003. "The Scope of Open Source Licensing," Levine's Working Paper Archive 506439000000000140, David K. Levine.
- Lerner, Josh & Tirole, Jean, 2003. "The Scope of Open Source Licensing," IDEI Working Papers 219, Institut d'Économie Industrielle (IDEI), Toulouse.
- Schmidt, Klaus M. & Schnitzer, Monika, 2003. "Public Subsidies for Open Source? Some Economic Policy Issues of the Software Market," CEPR Discussion Papers 3793, C.E.P.R. Discussion Papers.
- Lerner, Josh & Tirole, Jean, 2002. "Some Simple Economics of Open," Journal of Industrial Economics, Wiley Blackwell, vol. 50(2), pages 197-234, June.
- Saint-Paul, Gilles, 2003. "Information Sharing and Cumulative Innovation in Business Networks," CEPR Discussion Papers 4116, C.E.P.R. Discussion Papers.
- Kamien, Morton I. & Zang, Israel, 2000. "Meet me halfway: research joint ventures and absorptive capacity," International Journal of Industrial Organization, Elsevier, vol. 18(7), pages 995-1012, October.
When requesting a correction, please mention this item's handle: RePEc:ber:bertw1:0005. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thorsten Wichmann)
If references are entirely missing, you can add them using this form.