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On the determinants of the degree of openness of Open Source firms: An entry model

Author

Listed:
  • Stefano Colombo

    (DISCE, Università Cattolica)

  • Luca Grilli

    (Politecnico di Milano)

  • Cristina Rossi Lamastra

    (Politecnico di Milano)

Abstract

This paper examines the relationship between the degree of openness that software start-ups choose and some of the main industrial features faced by new entrants. Hypotheses derived from a formal model are tested through the implementation of econometric techniques and information provided by a novel database (ELISS). Theoretical predictions and empirical results indicate that the choice by start-ups of the degree of openness is negatively influenced by the sensitivity of consumers to price and is positively related both to the strength of network externalities their products exhibit and to the competitive advantage of the incumbent.

Suggested Citation

  • Stefano Colombo & Luca Grilli & Cristina Rossi Lamastra, 2009. "On the determinants of the degree of openness of Open Source firms: An entry model," DISCE - Quaderni dell'Istituto di Economia e Finanza ief0088, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    • Handle: RePEc:ctc:serie3:ief0088
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    File URL: http://www.unicatt.it/Istituti/EconomiaFinanza/Quaderni/ief0088.pdf
    File Function: First version, 2009
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    Citations

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    Cited by:

    1. Sandro Brusco & Luca Colombo & Umberto Galmarini, 2010. "Local Governments Tax Autonomy, Lobbying, and Welfare," Department of Economics Working Papers 10-01, Stony Brook University, Department of Economics.
    2. Dongryul Lee & Byung Kim, 2013. "Motivations for Open Source Project Participation and Decisions of Software Developers," Computational Economics, Springer;Society for Computational Economics, vol. 41(1), pages 31-57, January.
    3. Giuseppe Mastromatteo, 2011. "H.P. Minsky And Policies To Countervail Crises," DISCE - Quaderni dell'Istituto di Economia e Finanza ief0102, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    4. Giuseppe Mastromatteo, 2011. "The Debate on the Crisis: Recent Reappraisals of the Concept of Functional Finance," DISCE - Quaderni dell'Istituto di Economia e Finanza ief0105, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).

    More about this item

    Keywords

    open-source software; network effects; entry;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L17 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Open Source Products and Markets
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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