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• W1586346568 abstract "In this paper, we study oligopolistic competition between closed andopen source softwares. By intersecting existing economic contributions on open source,we propose a two stage game with perfect information and product di¤eretiation inwhich producers firstly set softwares quality, then they determine prices (constrainedat zero for open source programs). In doing this, we explicitly model lock-in e¤ects,network externality components of software quality as well as knowledge accumulationin software use and implementation.With respect to a monopolistic benchmark case, we argue that in duopoly a pro-prietary sofware producer facing an open source software will reduce its selling pricewhether: (i) its network of users is larger than open sources one and its consumers arelargely experienced on its program, (ii) it has a small network of un-skilled consumers.In opposition, after open source softwares emergence, proprietary software price doesaugment if proprietary software users form a large, but poorly skilled network. Fur-thermore, we show that, in all above cases, proprietary software quality increasesbecause of the existence of a open source alternative to a previouisly monopolisticprogram.Finally, by modeling knowledge accumulation processes through di¤erence equations, we show that the ratio between closed and open source programs opportunitycosts of software learning and deployment plays a crucial role in shaping market outcomes. Until an open source software remains too complex and technical for unskilledor time-scarse users, a shared market solution in which both softwares are adopted ispredicted. In contrast, if opportunity costs in learning and understanding open sourceprograms are remarkably low, or at least equal to opportunity costs of a closed sourcesoftware, then a open source dominance outcome (i.e. all software are open ones)phases out." @default.
• W1586346568 created "2016-06-24" @default.
• W1586346568 creator A5048619687 @default.
• W1586346568 date "2005-06-01" @default.
• W1586346568 modified "2023-09-27" @default.
• W1586346568 title "Copyleft vs Copyright: some competitive effects of Open Source" @default.
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• W1586346568 doi "https://doi.org/10.6092/unibo/amsacta/4749" @default.
• W1586346568 hasPublicationYear "2005" @default.
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