Dual licensing in open source software markets
Dual licensing has proved to be a sustainable business model for various commercial software vendors employing open source strategies. In this paper we study the main characteristics of dual licensing and under which conditions it represents a profitable commercial strategy. We show that dual licensing is a form of versioning, whereby the software vendor uses the open source licensing terms in order to induce commercial customers to select the proprietary version of the software. Furthermore, we show that the software vendor prefers dual licensing to a fully proprietary strategy when the customers are very sensitive to the reciprocal terms of the open source license.
|Date of creation:||2007|
|Date of revision:|
|Contact details of provider:|| Postal: Via Inama 5, 38100 Trento|
Web page: http://www.unitn.it/deco
More information through EDIRC
References listed on IDEAS
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.:
- Nicholas Economides, 1997.
"Network Externalities, Complementarities, and Invitations to Enter,"
- Economides, Nicholas, 1996. "Network externalities, complementarities, and invitations to enter," European Journal of Political Economy, Elsevier, vol. 12(2), pages 211-233, September.
- Josh Lerner & Jean Tirole, 2003.
"The Scope of Open Source Licensing,"
Levine's Working Paper Archive
506439000000000140, David K. Levine.
- Justin Pappas Johnson, 2002. "Open Source Software: Private Provision of a Public Good," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 11(4), pages 637-662, December.
- Gayer, Amit & Shy, Oz, 2003. "Internet and peer-to-peer distributions in markets for digital products," Economics Letters, Elsevier, vol. 81(2), pages 197-203, November.
- Stefano Comino & Fabio Manenti & Marialaura Parisi, 2007.
"From Planning to Mature: on the Determinants of Open Source Take-Off,"
"Marco Fanno" Working Papers
0035, Dipartimento di Scienze Economiche "Marco Fanno".
- Fabio M. Manenti & Stefano Comino & Marialaura Parisi, 2005. "From Planning to Mature: on the Determinants of Open Source Take-Off," Industrial Organization 0507006, EconWPA, revised 29 Sep 2005.
- Stefano Comino & Fabio M. Manenti & Maria Laura Parisi, 2005. "From Planning to Mature: on the Determinants of Open Source Take Off," Department of Economics Working Papers 0517, Department of Economics, University of Trento, Italia.
- Lanzi, Diego, 2009. "Competition and open source with perfect software compatibility," Information Economics and Policy, Elsevier, vol. 21(3), pages 192-200, August.
- Mikko Mustonen, 2005. "When Does a Firm Support Substitute Open Source Programming?," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 14(1), pages 121-139, 03.
- Katz, Michael L & Shapiro, Carl, 1986. "Technology Adoption in the Presence of Network Externalities," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 822-41, August.
- Comino, Stefano & Manenti, Fabio M. & Parisi, Maria Laura, 2007. "From planning to mature: On the success of open source projects," Research Policy, Elsevier, vol. 36(10), pages 1575-1586, December.
- Koski, Heli, 2007. "Private-collective Software Business Models: Cordinatitons and Commercialization via Licensing," Discussion Papers 1091, The Research Institute of the Finnish Economy.
- Paul Belleflamme, 2005.
"Versioning in the Information Economy: Theory and Applications,"
CESifo Economic Studies,
CESifo, vol. 51(2-3), pages 329-358.
- BELLEFLAMME, Paul, . "Versioning in the information economy: Theory and applications," CORE Discussion Papers RP 1777, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Chaim Fershtman & Neil Gandal, 2007. "Open source software: Motivation and restrictive licensing," International Economics and Economic Policy, Springer, vol. 4(2), pages 209-225, August.
When requesting a correction, please mention this item's handle: RePEc:trn:utwpde:0718. 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: (Luciano Andreozzi)
If references are entirely missing, you can add them using this form.