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Open Source Licensing in Mixed Markets, or Why Open Source Software Does Not Succeed

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  • Alexia Gaudeul

    () (School of Economics and Centre for Competition Policy, University of East Anglia)

Abstract

The rivalry between developers of open source and proprietary software encourages open source developers to court users and respond to their needs. If the open source developer wants to promote her own open source standard and solutions, she may choose liberal license terms such as those of the Berkeley Software Distribution as proprietary developers will then find it easier to adopt her standard in their products. If she wants to promote the use of open source software per se, she may use more restrictive license terms such as the General Public License to discourage proprietary appropriation of her effort. I show that open source software that comes late into a market will be less likely than more innovative open source software to be compatible with proprietary software, but is also more likely to be made more accessible to inexperienced users.

Suggested Citation

  • Alexia Gaudeul, 2008. "Open Source Licensing in Mixed Markets, or Why Open Source Software Does Not Succeed," Working Papers 08-2, Centre for Competition Policy, University of East Anglia.
  • Handle: RePEc:ccp:wpaper:wp08-02
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    File URL: http://www.ccp.uea.ac.uk/publicfiles/workingpapers/CCP08-2.pdf
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    References listed on IDEAS

    as
    1. Franke, Nikolaus & Hippel, Eric von, 2003. "Satisfying heterogeneous user needs via innovation toolkits: the case of Apache security software," Research Policy, Elsevier, vol. 32(7), pages 1199-1215, July.
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    Cited by:

    1. Alexia Gaudeul, 2009. "Consumer Welfare and Market Structure in a Model of Competition between Open Source and Proprietary Software," International Journal of Open Source Software and Processes (IJOSSP), IGI Global, vol. 1(2), pages 43-65, April.

    More about this item

    Keywords

    open source; software; standards; compatibility; network effects; duopoly; mixed markets; intellectual property; copyright; licensing;

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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