Contracts and Motivations. The Case of Open Source
The literature on Open Source phenomenon has revealed the crucial role played by both intrinsic and extrinsic motivations. However an analysis attempting to formally explore this interplay is still missing. In this paper, we try to fill the gap by introducing intrinsic motivations in standard principal-agent model, focusing on the case of Open Source Software (OSS). We show that, if developers’ intrinsic motivation is sufficiently high, paying developers to work on OSS projects allows the firm to induce a desired level of workers’ effort at a lower cost compared to the standard case of monetary incentives and sanctions coupled with costly monitoring.
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- Bitzer, Jurgen & Schrettl, Wolfram & Schroder, Philipp J.H., 2007.
"Intrinsic motivation in open source software development,"
Journal of Comparative Economics,
Elsevier, vol. 35(1), pages 160-169, March.
- Bitzer, Jürgen & Schrettl, Wolfram & Schröder, Philipp J. H., 2004. "Intrinsic motivation in open source software development," Discussion Papers 2004/19, Free University Berlin, School of Business & Economics.
- Jürgen Bitzer & Wolfram Schrettl & Philipp J.H. Schröder, 2005. "Intrinsic Motivation in Open Source Software Development," Development and Comp Systems 0505007, EconWPA.
- Roland Bénabou & Jean Tirole, 2003. "Intrinsic and Extrinsic Motivation," Review of Economic Studies, Oxford University Press, vol. 70(3), pages 489-520.
- Marcello Basili & Maurizio Franzini, 2007.
"Cooperation, reciprocity and self-esteem: A theoretical approach,"
Department of Economic Policy, Finance and Development (DEPFID) University of Siena
007, Department of Economic Policy, Finance and Development (DEPFID), University of Siena.
- Marcello Basili & Maurizio Franzini, 2009. "Cooperation, Reciprocity and Self-esteem: A Theoretical Approach," Chapters, in: The Economics of Ethics and the Ethics of Economics, chapter 11 Edward Elgar Publishing.
- Stephen M. Maurer & Suzanne Scotchmer, 2006. "Open Source Software: The New Intellectual Property Paradigm," NBER Working Papers 12148, National Bureau of Economic Research, Inc.
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